Air Arabia ECA-backed funding hits 60%

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Middle Eastern budget carrier Air Arabia says almost 60% of its new Airbus A320 deliveries have been financed under export credit agency-supported facilities.

The latest aircraft transaction closed in December 2013 and was arranged by German-based KfW IPEX-Bank.

So far, the Sharjah-based carrier has received 21 aircraft, 12 of them with finance supported by the European ECAs, says Air Arabia.

However, the ECA-backed fleet percentage is set to drop this year as the carrier has opted to fund new deliveries in the commercial debt market.

Air Arabia is scheduled to receive nine new A320s this year. The aircraft will be financed through commercial loans co-arranged by Qatar National Bank and Commercial Bank International.

In 2007, Air Arabia placed an order for 44 A320s with the aiframer. The deliveries will be completed by 2016.