flydubai Registers $68m Profit in 2014

Returns from investments in pension schemes declined in the fourth quarter of last year, sick compared to the third quarter of the same period under review.

A survey released by Actuarial Services East Africa indicates that returns from investment sector recorded an average return of 1.3 per cent of the third quarter.

Despite their low returns, unhealthy pension schemes are a critical component in economic growth through provision of a key source of funding for mega infrastructural projects. Employer-based pension schemes currently manage close to Ksh500 billion, compared to the National Social Security Fund’s Ksh136 billion.

The survey seeks to provide data to enable Trustees and Fund managers to compare the returns and performances of their respective schemes with other schemes.

“From the report, the Trustees and Fund Managers will be able to identify which asset categories performed better and compare the results of their scheme’s asset categories with those of other schemes,” it stated.

The report indicates that mega schemes of participating firms control about 71 per cent of the market share with each scheme investing over Ksh2 billion.

Offshore investment reported an average return of 1.71, up from -0.01 in the third quarter. There are about 1,300 pension schemes in the country controlling in excess Ksh680 billion. About 30 of these are individual retirement benefit schemes registered by the Retirement Benefits Authority (RBA).

Recently, RBA Chief Executive Officer Dr Edward Odundo said the regulator is targeting to grow the pension industry coverage to 20 per cent in the next five years.


The pension funds’ regulator also intends to increase assets from the current Ksh696.68 billion to Ksh1.02 trillion by June 2019.

“This will be possible through targeted awareness programmes and products designed to reach out to segmented groups. The authority will also pursue automatic enrollment,” said Dr Odundo.

He said RBA will create a facilitative legal framework to encourage product diversification and improve returns on savings and review the National Pension Policy to encourage sector growth
flydubai, health in its fifth year of operation, more about has announced its Annual Results for 2014 and reported a net profit of $ 68m, sales an increase of 12.3 percent compared to 2013 with total revenue of $1.2bn for the 12-month period, ending 31 December.

Officials Tuesday said last year saw flydubai, in support of the economic development of the UAE, remain focused on its long-term strategy to open up new routes by expanding opportunities for travel, maintaining efficient operations across its network and continuing to deliver a better customer experience.

His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of flydubai, said the UAE has firmly established itself as a centre of gravity for aviation.

“We have long recognised the importance of aviation to our economic growth.  flydubai continues to make a key contribution to our economy in particular as a result of its strategy to open up previously underserved routes,” he noted.

His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of flydubai, commenting on the Annual Results, added: “Recording its profitability for the third consecutive full year, the 2014 Results show that the recent order for more aircraft as well as investments in the offering on the ground and in the air has been the right strategy for the airline. flydubai’s role in the aviation sector is now being recognised beyond the region.”

Ghaith Al Ghaith, Chief Executive Officer of flydubai, reflecting on last year, said 2014 saw flydubai open up a record number of new routes in what was a demanding year.

“To have achieved what we have achieved is significant,” he stressed.

“The continued investment in our people and operations has strengthened our business and ensures that we are well positioned for sustained growth in the future.   It is good to see that more passengers than ever before are travelling with us.”

Operational Performance

Showing growing demand for its services from its passengers across its network, flydubai carried 7.25 million passengers in 2014 and has carried 24.3 million since it launched its operations.

It saw an increase in passenger numbers between 2013 and 2014 in Africa (14 percent), Central Asia (57 percent), Europe (11 percent) and the Subcontinent (11 percent).

In a year that saw the airline add 23 new routes, creating a network of 86 destinations, flydubai also increased frequency on many of its existing routes. Weekly flight frequencies to Beirut increased from 14 to 21, to Kuwait from 53 to 77, to Muscat from 28 to 41, to Salalah from 3 to 5 and Tbilisi which went to a daily service. The airline now operates 1,400 flights per week.

Its network across its geographic focus grew by the number of routes in Africa (100 percent), in Central Asia (66 percent), Europe including Russia (40 percent), the GCC (7 percent), Middle East (30 percent) and in the Subcontinent (38 percent).

flydubai offers one of the most comprehensive networks in the GCC with 608 weekly flights across 16 points in the region.

Having recognised the potential of the emerging markets in North and East Africa the schedule increased to 63 flights a week across 12 points.

Flights started to the regional economic hubs of Almaty and Moscow further strengthening trade and tourism opportunities with the UAE and onwards to Africa and the Subcontinent.

With the launch of four new points in India, flydubai saw 70 percent growth in passenger numbers and there remains much opportunity.

All aircraft delivered since August 2013 have been configured with Business Class. flydubai took delivery of eight new Next-Generation Boeing 737-800 aircraft  and ended the year with a fleet of 43 aircraft.

In October, it completed to schedule its rolling retrofit programme to configure the existing aircraft in its fleet with Business Class. The first seven aircraft it received between 2009 and 2010 were not part of the retrofit programme.

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