flydubai says expansion plans hindered by Boeing delays

Budget carrier flydubai’s fleet expansion plans have been hit by delays to Boeing’s (BA.N), opens new tab aircraft delivery schedule, the Dubai airline said on Monday.

Flydubai, the sister low-cost airline of flagship carrier Emirates, said it was “evaluating its route development plans and potential frequency revision across the network due to a lack of new aircraft deliveries over the next few months”.
Demand for air travel has rebounded since the pandemic, but planemakers are struggling to boost production levels due to disrupted supply chains and a safety crisis at Boeing.

Flydubai said Boeing’s delivery delays in recent years have placed substantial pressure on the airline and its ability to plan for its projected growth in the wake of strong post-pandemic demand for travel.

The carrier said that due to revisions of the delivery schedule for 2024, Boeing was not expected to hand over 14 Boeing 737 MAX aircraft originally scheduled for the year.

Flydubai, which has more than 125 Boeing 737 MAX jets on order to be delivered over the next decade, urged the U.S. manufacturer to “honour and renew its commitment” to meet its delivery obligations.

It also said it was exploring options to reduce the impact of the delays, adding it had entered aircraft, crew, maintenance and insurance (ACMI) deals, without elaborating.

The carrier also flagged it had incurred additional costs as it had to extend the lease on some aircrafts it was planning to return under sale and leaseback agreements.

Flydubai says it is the largest operator of Boeing 737 MAX aircraft in the Middle East and Gulf Cooperation Council (GCC) region.