Turkish Airlines Becomes the First Airline to Secure Chinese Yuan Denominated Aircraft Financing Outside of China
Date
7/28/2024 3:48:16 AM
(MENAFN- Ogilvy) Flying to more countries than any other airline, Turkish Airlines has added a new currency to its financing portfolio in line with its natural currency hedging policy, thanks to its diversified revenue structure.
Three Airbus A350 aircraft that joined the flag carrier’s fleet between May and July 2024 are financed in Chinese Yuan by AVIC International Leasing and CCB Financial Leasing.
On its success journey from boutique to the top, Turkish Airlines continues to grow in the Chinese market by increasing flight frequencies and several collaborations with valued partners in the region. By working with leading aircraft financiers in the Chinese market, global airline is also enriching its financing portfolio in terms of both currency and geography.
Upon the closing of these transactions, Turkish Airlines Chairman of the Board and Executive Committee, Prof. Ahmet Bolat stated; “As Turkish Airlines, we have added another achievement to our successes in aircraft financing by becoming the first airline to secure aircraft financing in Chinese Yuan outside of China. By adding the fifth currency to the variety of currencies used in aircraft financing, we do not only support our currency hedging strategies but also focus on keeping our financing cost at the minimum levels. Our Chinese business partners’ interest and support to this transaction, which was never used outside China before, is an indicator of the mutual trust between the parties as well as the collaboration between our countries. We aim to continue being a pioneer in the market by adding new structures to these successful and innovative financings in the future.
With its experienced aircraft financing team, Turkish Airlines has not only achieved one of the lowest financing costs in multiple currencies in the airline industry but has also been recognized annually with various financing awards from globally renowned organizations such as Global Transport Finance, Airline Economics, Airfinance Journal, and Bonds, Loans & Sukuk. These recognitions are a result of employing innovative financing models, many of which were groundbreaking in the industry. Turkish Airlines has crowned its success in this regard, having won over 30 international aircraft finance awards in the last ten years for its successful executions amounting to approximately 16 billion USD.
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