Saudi flyadeal delays Boeing order

Budegt carrier Flyadeal started flights in 2017. (Supplied)
Updated 16 March 2019

Saudi flyadeal delays Boeing order

  • Flyadeal will wait until investigations into two Boeing 737 MAX crashes are completed before deciding whether to proceed with a signed order for 30 of the jets
  • $5.9bn deal on hold after budget airline says it will wait on ndings of Ethiopian crash inquiry

DUBAI: Saudi Arabian budget airline flyadeal will wait until investigations into two Boeing 737 MAX crashes are completed before deciding whether to proceed with a signed order for 30 of the jets, its CEO said on Friday.
The 737 MAX has been banned from flying in most countries after an Ethiopian Airlines crash on Sunday that killed all 157 people on board. This was a second deadly incident involving the relatively new Boeing model in five months. In October, a Lion Air jet crashed in Indonesia killing all 189 people on board.
“We’re in a hold for the moment. We are monitoring and in constant contact with Boeing and will wait for the outcomes to be known before moving forward,” CEO Con Korfiatis told Reuters by phone.
Flyadeal ordered 30 Boeing 737 MAX 8s last December with purchasing options for 20 more in a deal that Boeing said was worth $5.9 billion at list prices.

 

The budget carrier, which started flights in 2017 and is owned by Saudi Arabian Airlines (Saudia), chose the MAX jet over Airbus’ narrowbody A320neo.
The US on Wednesday joined most countries in grounding the 737 MAX over safety fears. Acting Federal Aviation Administration (FAA) administrator Daniel Elwell has said he does not know how long the US grounding will last. 
Saudi Arabia has not said whether it has grounded the aircraft. It has been grounded in neighboring United Arab Emirates and Oman.
Emirati carrier flydubai this week said the 737 MAX remained integral to its future strategy and that it valued its long-standing relationship with Boeing.
Flydubai is one of the largest MAX customers having ordered 250 of the new model narrowbody jets since 2013. It currently has 13 MAX aircraft in its fleet.

FASTFACTS

Flyadeal ordered 30 Boeing 737 MAX 8s last December with purchasing options for 20 more in a deal that Boeing said was worth $5.9 billion at list prices.


Dubai rents may be bottoming out as ‘green shoots’ appear

Updated 20 January 2020

Dubai rents may be bottoming out as ‘green shoots’ appear

  • An estimated 45,000 homes were completed in Dubai in 2019 according to Chesterton estimates

LONDON: Confidence may be returning to Dubai property despite a bloated market for off-plan homes, according to a report from Chestertons, the real estate broker.

Although apartment and villa sales prices were down 2 percent and 3 percent respectively in the fourth quarter of 2019 compared to the previous quarter, rental rates are stabilizing.

But supply issues continue to represent the biggest challenge facing the market, with 45,000 new units completed in 2019 and that expected to double this year.

“The Dubai residential market in Q4 2019 is alluding to a more positive outlook for 2020 thanks to the slowdown of sales price declines and the leveling of rental rates,” said Chris Hobden, of Chestertons MENA. “This does, however, have to be tempered by the volume of new units scheduled for delivery in 2020, which makes the short-term recovery of prices in the emirate unlikely.”

In the rental market, no movement was witnessed in the fourth quarter with the market supported by a draft law which would fix rental rates for three years upon the signing of a contract. 

“To ensure high occupancy in 2020, landlords will have to be realistic in the face of tough market conditions. The incentives previously offered to tenants, such as rent-free periods, multiple cheques and short-term leases, will continue, with an increase in tenant demand for monthly direct debit payments also likely” added Hobden.