Flydubai announced on Monday that its expansion plans have been severely affected by Boeing's recent updates on continued delays in aircraft delivery schedules. The Dubai-based airline is now reassessing its route development strategies and potential adjustments in flight frequencies across its network due to the absence of new aircraft deliveries in the coming months.
Ghaith Al Ghaith, CEO of flydubai, expressed deep disappointment, stating, "We are extremely disheartened to hear that Boeing will be unable to meet its promise of delivering additional aircraft for the rest of the year. The frequent and sudden changes in Boeing's delivery schedules have significantly hampered our strategic growth plans, leading to substantial disruptions in our published schedules. This reduced capacity will inevitably impact both our customers and our anticipated financial outcomes. We urge Boeing to promptly address these issues and stabilize its production and delivery processes to prevent further delays while maintaining the highest standards. We are eager for a quick resolution to this problem."
The unpredictability of Boeing's delivery schedules over the past few years has placed considerable strain on flydubai and its ability to plan effectively for future growth, particularly as it prepared to meet the increased demand for travel post-pandemic. Initially, flydubai planned to receive 14 new aircraft this year. The airline is exploring all available options to lessen the impact of these delivery delays. Flydubai operates a fleet of 88 Boeing 737 aircraft, including 29 next-generation 737-800s, 56 737 MAX 8s, and three 737 MAX 9s.
The ongoing issues with Boeing's delivery schedule have resulted in fewer aircraft deliveries annually over the past three years. Multiple revisions to the 2024 delivery schedule indicate that Boeing will not deliver the originally planned 14 Boeing 737 MAX aircraft. The aircraft delivered in the first half of the year were from previous years' backlog and experienced significant delays. Flydubai has over 125 Boeing 737 MAX aircraft on order for delivery over the next decade.
To counteract the delays in aircraft deliveries and to accommodate the rising demand for travel and increase capacity, especially during peak periods, flydubai has entered into ACMI agreements. Additionally, the airline has extended the leases on some aircraft that were due to be returned to lessors under sale and leaseback agreements, incurring additional costs. Flydubai has also invested in an extensive retrofit program for its fleet of next-generation Boeing 737-800 aircraft to maintain a consistent onboard experience for passengers and align the cabin product in the absence of new aircraft joining the fleet this year.
The reduced number of aircraft deliveries this year has increased pressure on flydubai's fleet utilization. With six new routes planned for the next few months, the airline is currently reviewing its schedule and frequency of operations across its network due to limited aircraft availability. Over its 15 years of operation, flydubai has established itself as a major player in the UAE and regional aviation industry, developing a robust and diverse network and opening up underserved markets. As the largest operator of Boeing 737 MAX aircraft in the Middle East and GCC, flydubai's expanding fleet has supported its ambitious growth plans. Boeing's ability to fulfill its contractual aircraft delivery commitments has been vital to achieving these growth objectives.
