Turkish Airlines executed an innovative financing transaction for an Airbus A350 aircraft in Swiss francs (CHF) through an Islamic finance structure.
Landmark Transaction Nearly a Year in the Making
Turkish Airlines signed an Ijarah arrangement with Dubai Islamic Bank (DIB), the world’s first Islamic bank and the largest in the United Arab Emirates, for an Airbus. The bank will act as a financier for the airline to help it in its acquisition and induction of a new Airbus A350-941 aircraft into its fleet. The transaction is structured through the Ijarah, which will be a 12-year Islamic finance lease.
The transaction progressed for nearly a year, which was achieved by a long-time close collaboration between Turkish Airlines and DIB, incorporating diverse, globally recognised financial instruments into the flag carrier’s funding strategy.
The airline held a signing ceremony at its home hub in Istanbul to celebrate it.
Supporting Turkish Airlines’ 2033 Vision with Sustainable Financing
This transaction aligned with the airline’s long-term expansion strategy towards 2033, the 100th anniversary of the airline, especially its commitment to developing innovative, sustainable, and globally inclusive financing solutions.
Turkish Airlines Chairman of the Board and the Executive Committee, Professor Ahmet Bolat, said:
“This transaction demonstrates our commitment to financial innovation and strengthening our fleet while also marking a new chapter in our cooperation with leading institutions in the UAE and the broader Gulf region. We are pleased to have completed this landmark financing in collaboration with DIB and look forward to building on this partnership in the future.”
DIB Group Chief Executive Officer Dr. Adnan Chilwan said:
“The fact they chose Islamic finance for the first time in their history marks a significant milestone for our industry, one we are proud to help shape. This transaction not only supports the airline’s continued growth but also reinforces the growing relevance of Sharia-compliant finance across global markets. We are privileged to partner on this landmark development in the country’s aviation industry further cementing the deep economic ties between the UAE and Türkiye.”
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