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Flynas aircraft
Bander Al-Mohanna, CEO and Managing Director of flynas, said that the latest agreement signed by Saudi Arabia’s leading low-cost carrier is valued at SAR 110 billion, marking the biggest deal in the world’s commercial aviation industry this year.
In an interview with Alsharq, Al-Mohanna said the carrier has several options to finance the deal, including bank loans, self-financing, or resorting to the sale and leaseback system. This is in light of the company's strong relationships with local and international banks and its strong financial solvency.
The delivery of the aircraft will extend from 2027 to 2034. This will enable flynas to achieve its target of increasing its destinations from 70 currently to 165 domestic and international stations.
He pointed out that the company conducted a thorough study at the beginning to choose the best aircraft suitable for its operations and the operating environment in the Kingdom and chose Airbus. It continued with Airbus because it is an economical airline, and it is preferable to maintain a certain type of aircraft to enhance operational efficiency. Additionally, there is a special relationship with Airbus in terms of delivery and other agreed commercial terms.
Al-Mohanna went on to say the company's overall financial situation is robust. With the increase in the fleet, the financial statements and profits will witness a positive impact and a solid position.
The company has been making profits since 2015, except for one year during the COVID-19 pandemic. Its financial position is excellent, achieving outstanding profits, with revenues of $1.7 billion last year. Revenues and profits are expected to increase this year in line with its expansion.
He mentioned that the company is expanding intensively in line with the Kingdom's Vision 2030 and the civil aviation strategy, anticipating strong growth and significant opportunities for airlines to keep up with the Kingdom's ambitions. The upcoming period is expected to see an increase in seating capacity across all companies.
Last week, flynas signed an agreement with Airbus to buy 160 new aircraft, increasing its total orders to 280 over seven years, which marks one of the largest aircraft orders in the region.
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