Boeing, FlyDubai Announce Next-Generation 737 Order

Boeing [NYSE: BA] and Dubai’s recently launched low-cost airline FlyDubai today announced an order for 50 Next-Generation 737-800s at the Farnborough Airshow. Valued at approximately $3.74 billion at current list prices, the order will be added to Boeing’s Orders & Deliveries Web site at the next regularly scheduled update. FlyDubai has substitution rights to convert its 737-800 orders to 737-900ERs (extended range) in the future.

"The Boeing Next-Generation 737 is ideally suited to our mission to bring some two billion regional inhabitants affordable, efficient and flexible travel options to and from Dubai" said Sheikh Ahmed bin Saeed Al-Maktoum, chairman of the new low-cost airline. "FlyDubai will be the first step for a new set of passengers seeking out high-demand tourist destinations in the Gulf States and surrounding countries, while bringing connectivity to all parts of the globe"

The Dubai government initially formed FlyDubai in March. Since then, the airline has been building a business model based on flexible flight operations with a high degree of interactivity with its customers, giving them greater control in booking flights and tailoring their in-flight services. The low-cost airline’s operations will be entirely separate from Emirates Airline and Group.

Boeing Chairman, President and Chief Executive Officer CEO Jim McNerney hosted a ceremonial signing and press conference held at the air show.

"Our relationship with the UAE is something we truly value and have worked to strengthen over time" McNerney said. "Today’s order is the result of a thorough analysis of the contributions the Next-Generation 737 can make to FlyDubai’s innovative business model. We foresee the unmatched efficiency and operability of this incredible airplane bringing the same success to our partners in Dubai as it does to so many of the world’s most successful low-cost carriers"

One hundred sixteen customers have ordered more than 4,800 Next-Generation 737s. Boeing has more than 2,200 unfilled orders for the Next-Generation 737 valued at more than $160 billion at current list prices.