Subscribe Free
in Air Transport

Turkish Airlines becomes first airline to use new insurance-backed aircraft financing product

Posted 21 March 2019 · Add Comment

Turkish Airlines has become the first airline to use the brand new insurance-backed aircraft financing product “Balthazar” combined with French lease, with the financing of its A321 NEO aircraft arranged by BNP Paribas.

 

The product was developed by Airbus with the cooperation of an insurance consortium consisting of several highly-rated insurance companies to address the need of new products in the aircraft financing market. Turkish Airlines successfully combined a French lease advantage in this 12-year transaction together with insurance cover, leading to an innovative and cost-effective product that contributed significantly to the overall competitiveness of its aircraft financing portfolio.

BNP Paribas, a leading bank in aircraft financing with an international reach and a long-term financing partner of Turkish Airlines, committed a financing amount of up to 225 million USD for five A321 NEO aircraft to be delivered in 2019. In managing a large number of stakeholders and under various roles, BNP Paribas played an instrumental role in handling this first-of-a-kind transaction on behalf of Turkish Airlines.

Turkish Airlines has had very innovative and first-of-a-kind financing models rewarded by ‘Jane's Transport Finance’, ‘Global Transport Finance’, ‘Airline Economics’, ‘Airfinance Journal’, and ‘Bonds, Loans & Sukuk Turkey’ in respect of its financing models put in practice since 2008. Turkish Airlines has crowned its success in this regard, as having won 23 international aircraft finance awards in the last ten years for its successful financing performance amounting to 15 billion USD.

* required field

Post a comment

Other Stories
Advertisement
Latest News

Air Arabia Abu Dhabi agreement sparks talk of Emirates merger with Etihad Airways

Following the news that Etihad Aviation Group and Air Arabia have signed of an agreement to launch Abu Dhabi’s first low-cost airline, this has ‘rekindled’ talk of an Emirates merger with Etihad Airways, according to GlobalData.

Turkish Technic and Satair sign agreement to support Airbus fleet management

Turkish Technic and Satair have signed a strategic General Terms Agreement (GTA) to facilitate further business growth between the two entities.

Spatial to manufacture a Water Evacuation Trainer for Singapore Airlines

Spatial, a provider of cabin crew training simulators based in the UAE, is to manufacture a Water Evacuation Trainer for Singapore Airlines.

MNG Airlines signs new base manintenance agreement With Joramco

Joramco, the Amman based MRO and the engineering arm of Dubai Aerospace Enterprise (DAE), has signed a new base maintenance agreement with MNG Airlines; a Turkish cargo airline headquartered in Istanbul, to perform three C checks on two

Emirates announces commercial management rotations

Emirates has made several key management movements across its commercial operations team in the Middle East, Far East, Europe and Emirates Skywards.

EgyptAir in expansion of cooperation with Optiontown

EgyptAir has announced the expansion of cooperation with Optiontown for optimum travel services.

GAS SK021019190320
See us at
DIAC19_BT0509161119AVAFA20BT2607050320Global Aircraft Maintenance BT0910061119BIDEC BT0108301019AVMENA20 BT1309100620Dubai AS BT2006211119