Turkish Airlines has opted to use an Islamic financing transaction for the first time, in order to fund the acquisition of an Airbus A350.
The carrier says the aircraft’s financing has been structured in Swiss francs with Dubai Islamic Bank, through an Ijarah arrangement – similar to a finance lease.
“This transaction demonstrates our commitment to financial innovation and strengthening our fleet,” says Turkish Airlines chair Ahmet Bolat.
He adds that it diversifies the funding portfolio and represents a “new chapter” of co-operation with United Arab Emirates and Gulf institutions.
Turkish Airlines has 110 A350s on direct order with Airbus, including 90 A350-900s, 15 A350-1000s and five A350Fs.
It says the Islamic transaction took nearly a year to arrange.
“This transaction not only supports the airline’s continued growth but also reinforces the growing relevance of Sharia-compliant finance across global markets,” states Dubai Islamic Bank group chief Adnan Chilwan.
