Saturday, July 27, 2024
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Turkish Airlines, which flies to more countries than any other airline, has added a new currency to its financing portfolio as part of its natural currency hedging strategy, leveraging its diverse revenue structure.
Three Airbus A350 aircraft that joined the fleet between May and July 2024 are financed in Chinese Yuan by AVIC International Leasing and CCB Financial Leasing.
As Turkish Airlines continues its successful journey from a boutique airline to a global leader, it is expanding its presence in the Chinese market by increasing flight frequencies and establishing several collaborations with esteemed partners in the region. By partnering with leading aircraft financiers in China, the airline is diversifying its financing portfolio both in terms of 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.
Turkish Airlines, backed by its expert aircraft financing team, has secured some of the lowest financing costs in the airline industry across multiple currencies. This achievement has earned the airline numerous annual awards from prestigious organizations, including Global Transport Finance, Airline Economics, Airfinance Journal, and Bonds, Loans & Sukuk. The airline’s recognition stems from its innovative financing models, many of which have set new standards in the industry. Over the past decade, Turkish Airlines has won over 30 international aircraft finance awards for successfully executing financing deals totaling approximately 16 billion USD.
