DALLAS — flydubai (FZ) is arguably one of the most interesting airlines in the Middle East. Despite its young age, it has consistently achieved impressive numbers, including carrying its 100^th millionth passenger, expanding its fleet multiple times, and adding all the pieces of the puzzle needed to create a world-class carrier.

In just a few years, FZ has become one of the largest carriers in the Middle East. The airline originated in 2008, when the government of Dubai established it. In July 2008, FZ signed its first order for 50 Boeing 737-800—FZ's first flight took off a year later.

Since then, FZ has rolled out different business-class products, welcomed over 80 Boeing 737 aircraft to its fleet, and officially become a wide-body airline with its order for 30 Boeing 787-9 jets at the 2023 Dubai Airshow.

At the time, the order consolidated a long-lasting relationship with the American manufacturer Boeing. Fast forward a few months, and the situation was completely different. 

So, what happened?

Aircraft Delivery Delays

In the past years, no airline has been exempted from delivery delays. New airliners have almost always joined fleets significantly after the scheduled timeframe. To some extent, this applies to all manufacturers and airlines, with some notable exceptions, both positive and negative, with flydubai being one of them.

At the 2024 Farnborough Airshow, flydubai was one of the hottest topics. Usually, airlines and manufacturers occupy the first pages of the news during airshows after significant announcements or by showcasing their latest products.

Despite not exhibiting any of its Boeing 737 jets in Hampshire, FZ opened the airshow by expressing its disappointment in Boeing’s delivery delays. The airline communicated that “its expansion plans have been significantly impacted by Boeing’s latest update regarding ongoing delays in its aircraft delivery schedule.” This move came as a shock to some of the journalists and analysts in the media room.

Since its foundation, FZ has been a loyal Boeing customer. Its relationship with Boeing has allowed FZ to reach the 100 million passenger milestone and open a solid international network. Today, FZ has more than 125 Boeing 737 MAX aircraft on order, which will be delivered in addition to 30 Boeing 787s over the next decade.

In the summer of 2024, the airline was informed that it would not receive any further Boeing 737 MAX until the end of the year. The 14 Boeing 737s that were supposed to join FZ’s fleet in 2024 were not delivered, and all the deliveries the airline received were initially scheduled for 2023.

Commenting on the ongoing delays, Ghaith Al Ghaith, Chief Executive Officer at flydubai, said: “We are extremely disappointed to learn that Boeing will not be able to fulfill its commitment to deliver more aircraft for the remainder of the year. Boeing’s short-noticed and frequent delivery schedule revisions have hindered our strategic growth plans, resulting in significant disruptions to our published schedules. The reduced capacity will ultimately affect our customers as well as our projected financial performance.”

The delivery delays have profound implications for FZ’s expansion. Since its foundation, the airline has been able to open 90 new routes that did not previously have direct air links to Dubai or were not served by a UAE national carrier from Dubai. Today, flydubai’s network includes 126 destinations in 55 countries, spanning West as Basel and East as Krabi in Thailand. Flydubai can benefit from operating in highly densely populated areas with a potential reach of 2 billion people.

“flydubai has always valued its longstanding partnership with Boeing and both airline and the manufacturer have been resilient and agile in tackling challenges over the years. We urge Boeing to take immediate action and implement measures to stabilise its production and delivery processes to avoid further delays while upholding the highest standards. We look forward to a swift resolution of this issue,” added Al Ghaith.

However, the network expansion has been significantly revised due to the lack of aircraft. To ensure its operations, flydubai mitigated the risks by entering Aircraft, Crew, Maintenance, and Insurance agreements.

The airline has also extended the lease on some of its aircraft and invested in retrofitting some of its Boeing 737-800 jets to ensure a more consistent onboard experience for its passengers.

Low Cost, Hybrid, Premium?

Flydubai’s business model is rather interesting. The airline has been operating in a competitive environment for a while now and has emerged as one of the leading airlines in the region. You might wonder, “Is flydubai a low-cost carrier (LCC)?” Well, the answer is, it depends, but not really.

When we think of LCCs, the first airlines that pop into our minds are often easyJet (U2), Spirit (NK), and Ryanair 9FR). Like FZ, these fly an all-narrowbody fleet; however, this is the end of most analogies.

Flydubai offers different travel classes in the economy segment, like many other legacy carriers in Europe, North America, and Asia. Sometimes, the price differences are almost negligible. You can opt for meals, checked luggage, seat selection, and more depending on your fare. 

Unlike a growing number of airlines and, of course, low-cost carriers, hand baggage is always included in every fare. The airline offers an in-flight entertainment service, which can be used for a fee in economy class.

flydubai offers a proper business class service onboard its fleet, including lie-flat seats, lounge access, and more. One of the many aspects impacted by the delivery delays is the rollout of FZ’s new Premium Business Class Experience. Called the “Business Suite,” the new cabin was unveiled at the Arabian Travel Market and was supposed to be launched at the end of 2023 on the Boeing 737 MAX. 

The airline expected to fly the new product on board six aircraft by the first quarter of 2024. However, that was not possible due to the delays.

The new cabin is arranged in a 1-1 configuration and offers direct aisle access, a 17-inch 4K in-flight entertainment system, ambient lighting, privacy doors, and a lie-flat seat. These specs are not precisely what travelers may associate with a low-cost airline and exceed some modern cabins on twin-aisle aircraft.

The cabin is just the latest iteration of FZ’s premium classes, which started in 2013 and introduced lie-flat seats in 2017. Just four years later, in 2021, flydubai introduced its recliner business class seats to be deployed on shorter and medium-haul routes.

A developing offer on the ground matches FZ's premium onboard offer. In December, FZ inaugurated its new business class lounge at terminal two to further enhance its premium experience. 

The new lounge features modern aesthetics incorporating natural light in its simple and elegant design that draws inspiration from the serene and timeless beauty of desert dunes. The warm tones and minimalist aesthetics feature some of Dubai’s most iconic skylines, creating a comfortable space for relaxation and productivity. 

A few weeks before, the new dedicated business class check-in was presented at Terminal 2. This is not all. Passengers departing from terminal three can fully use the Emirates (EK) facilities, including the premium check-in and lounges.

All these aspects should be enough to move away from the traditional “low-cost” image that is too often associated with flydubai. The airline has been extensively working on its offer to keep up with the times and diversify its services, appealing to business and leisure travelers.

This is easier said than done when you share your main hub with EK; however, that is another story. 

Comment on our social media channels if you'd like Airways to produce a deep dive on our YouTube channel about the relationship between EK and FZ.

Overall, FZ has niched a privileged spot in the Middle East market. Its offer has evolved over the years to capture the market’s needs. Despite the significant delivery delays, the airline has thrived and unlocked Dubai’s full aviation potential.

Have you ever flown with FZ? How was your experience? Tell us on our social media channels.

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