Turkish Airlines has chosen to use Islamic financial transactions for the first time to fund the acquisition of the Airbus A350.
The airline says that aircraft financing consists of the Dubai Islamic Bank and the Swiss franc, through Ijara's arrangements, as well as financial leases.
“The transaction demonstrates commitment to financial innovation and strengthening the fleet,” says Turkish Airlines Chairman Ahmet Borat.
He added that it diversifies its funding portfolio and represents a “new chapter” of cooperation with the United Arab Emirates and Gulf agencies.
Turkish Airlines has a 110 A350 order directly through Airbus, including 90 A350-900, 15 A350-1000 and five A350Fs.
It is said that the Islamic transaction took almost a year to arrange it.
“The transaction not only supports the continued growth of the airline, but also strengthens the increased relevance of Sharia-compliant financial institutions across the global market,” said Chief Adnanchiruwan, Dubai Islamic Bank Group.
