Saudi budget carrier flyadeal to pick Airbus or Boeing jets by end of month

Flyadeal currently operates a fleet of eight leased Airbus A320ceos. (Courtesy flyadeal Facebook)
Updated 14 November 2018
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Saudi budget carrier flyadeal to pick Airbus or Boeing jets by end of month

DUBAI: Saudi Arabian budget airline flyadeal aims to decide whether to order Airbus or Boeing narrow-body jets by the end of this month, its chief executive said on Wednesday.
Flyadeal, a subsidiary of state-owned Saudi Arabian Airlines, had been due to decide on the order for 30 Airbus A320neos or Boeing 737 MAXs in the second quarter but held off to further assess the performance of the revamped models.
“We want some evidence because we’re committing a huge chunk of capital,” Con Korfiatis told Reuters at a Dubai conference, adding that the planemakers had competed “very vigorously.”
Flyadeal is a pure low-cost airline, with passengers charged for meals and checked luggage, a model that has so far not had major success in the Middle East beyond UAE-headquartered Air Arabia.
The order for the planes, which are the latest versions of world’s most used jets and typically employed for short to medium haul flights, would be worth more than $3 billion at current list prices, although industry sources say discounts of around 50 percent are common on such large orders.
Although the world’s two largest planemakers say they are mostly sold out of the jets until 2024, the order will give flyadeal a pipeline allowing it to plan for long-term growth.
The airline, which plans to add around 10 aircraft a year to its fleet from 2020, will next year start leasing the model of jet it orders until it receives its first aircraft from the production line, Korfiatis said.
Flyadeal operates a fleet of eight leased Airbus A320ceos and will add another three by early January 2019, allowing it to expand from 10 to 14 domestic destinations.
The airline, which launched in September 2017, has carried more than 2 million passengers so far and expects to carry more than 3.5 million in 2019, Korfiatis said.
It is also planning to launch its first international flight next year which will likely be to Egypt, Turkey, or to other Gulf Arab countries.


Egyptian economy on right track after 5.6% growth in 2018-2019: prime minister

Updated 17 July 2019
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Egyptian economy on right track after 5.6% growth in 2018-2019: prime minister

  • Egypt is emerging from a three-year economic reform program tied to a $12 billion loan from the IMF
  • Egypt has been praised by international lenders for swift reforms implemented since 2016

CAIRO: Egypt’s economy grew 5.6 percent in the 2018/19 fiscal year and is “on the right track” as it completes IMF-backed reforms, Prime Minister Mustafa Madbouli said on Wednesday.
The budget deficit came in at 8.2 percent of GDP, he said, which was slightly below an official forecast of 8.4 percent.
Egypt is emerging from a three-year economic reform program tied to a $12 billion loan from the International Monetary Fund.
Madbouli said Egypt’s primary surplus stood at 2 percent for the fiscal year, which ended in June, and also pointed to a recent drop in inflation as positive signs. Economic growth was up from 5.3 percent in 2017/18 and in line with a government forecast.
“At the same time, it induces us to complete the implementation of reforms and the efforts exerted to achieve the targets for the new fiscal year,” Madbouli said in a statement said.
Egypt has been praised by international lenders for swift reforms implemented since 2016, though austerity measures and inflation have left many Egyptians struggling to get by.
The reforms included a sharp devaluation of the currency, the introduction of value-added tax and the elimination of subsidies on most fuel products.
Headline annual inflation dropped to 9.4 percent in June from 14.1 percent the previous month, though it is expected to rise over the rest of the summer as the impact of the latest round of fuel subsidy cuts kicks in.