Dubai-based flydubai has revealed that its expansion plans have been severely affected by Boeing's recent update on the continued delays in its aircraft delivery schedule. The airline is reassessing its route development strategies and considering adjustments to flight frequencies across its network due to the anticipated shortage of new aircraft deliveries in the coming months. flydubai has called on Boeing to uphold and renew its commitment to meet delivery obligations. Ghaith Al Ghaith, CEO of flydubai, expressed deep disappointment: "We are extremely disheartened to hear that Boeing will be unable to deliver additional aircraft for the rest of the year. Boeing's abrupt and frequent changes to the delivery schedule have significantly hampered our strategic growth plans, leading to major disruptions in our published schedules. This reduced capacity will inevitably impact our customers and our financial forecasts."
"flydubai has always cherished its enduring partnership with Boeing, and both parties have demonstrated resilience and adaptability in overcoming challenges over the years. We urge Boeing to take immediate steps to stabilize its production and delivery processes to prevent further delays while maintaining the highest standards. We anticipate a prompt resolution to this issue," added Al Ghaith. The unpredictability of Boeing's delivery schedules over the past few years has placed considerable strain on flydubai and its ability to plan for future growth, particularly as it prepared to meet the post-pandemic surge in travel demand.
flydubai's plans for this year were initially based on the expectation of receiving 14 new aircraft. The airline is exploring all available options to alleviate the impact of these delivery delays. flydubai operates a fleet consisting solely of 88 Boeing 737 aircraft, including 29 Next-Generation Boeing 737-800s, 56 Boeing 737 MAX 8s, and 3 Boeing 737 MAX 9s. The ongoing issues with Boeing's delivery schedule have resulted in fewer aircraft being delivered annually over the past three years. Multiple revisions to the 2024 delivery schedule mean that Boeing will not deliver the originally scheduled 14 Boeing 737 MAX aircraft. The aircraft delivered in the first half of the year were from previous years' backlogs and experienced significant delays. flydubai has over 125 Boeing 737 MAX aircraft on order for delivery over the next decade.
The strategic growth plans of flydubai, which heavily depend on the timely addition of new aircraft to the fleet, have been significantly affected by the ongoing delays in Boeing aircraft deliveries. To counteract these delays and meet the increased demand for travel, especially during peak periods, flydubai has entered into Aircraft, Crew, Maintenance, and Insurance (ACMI) agreements. The airline has also extended the lease on some aircraft that were due to be returned to lessors under Sale and Leaseback agreements, incurring additional costs. In addition to these measures, flydubai has undertaken an extensive retrofit program for its fleet of Next-Generation Boeing 737-800 aircraft to ensure a consistent onboard experience for passengers and to align the cabin product in the absence of new aircraft joining the fleet for the remainder of the year.
The reduced number of aircraft deliveries this year has increased pressure on flydubai's fleet utilization. With six new routes planned to launch in 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. flydubai is the largest operator of Boeing 737 MAX aircraft in the Middle East and GCC, and its expanding fleet has supported its ambitious growth plans over the years. Boeing's ability to meet its contractual aircraft delivery commitments to the carrier has been essential to realizing these growth plans.
