Air Arabia uses cash to buy new A320

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Air Arabia has internally funded a new Airbus A320 aircraft (MSN 5423), which was delivered last week.

The Arabian carrier confirmed to Flightglobal it used internal cash resources for the funding.

Previously, in October, Sumitomo Mitsui Banking Corporation (SMBC) closed the financing of one new Airbus A320 for the carrier. The bank arranged an export credit agency-guaranteed loan covering the aircraft, MSN 5276, which is equipped with CFM56-5B3 engines.

The aircraft marked the fourth A320 delivery this year for Air Arabia. Another delivery was financed using cash, while Standard Chartered Bank arranged an ECA-guaranteed transaction to finance two new A320s, MSNs 5143 and 5206, which delivered in May and July 2012.