Flydubai gets huge capital infusion

Budget airline flydubai will receive fresh government funding of Dh280 million, raising its capital to Dh500 million following a decree by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

"The full amount is to be paid by the Dubai Government, according to Law No 13 of 2010, issued by Shaikh Mohammad," the news agency WAM reported yesterday.

Flydubai's capital had been set earlier by law at Dh220 million, fully paid by the Dubai Government. The new law has more than doubled the company's capital.