By Staff Reporter
Turkish Airlines, the airline flying to more countries than any other, successfully executed an innovative financing transaction for an Airbus A350 aircraft. Marking a strategic milestone in the diversification of its funding portfolio, the national flag carrier completed the financing in Swiss francs (CHF) through an Islamic finance structure. The finance lease structured through an Ijarah arrangement, was signed with Dubai Islamic Bank (DIB), the world’s first Islamic bank and the largest in the United Arab Emirates.
Nearly a year in the making, this transaction is the result of close collaboration between Turkish Airlines and DIB, aimed at incorporating diverse, globally recognized financial instruments into the flag carrier’s funding strategy. To celebrate the successful closing, Turkish Airlines hosted a signing ceremony at its headquarters in Istanbul.
Commenting on the milestone deal, Turkish Airlines Chairman of the Board and the Executive Committee, Prof. Ahmet Bolat stated:
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.
Commenting on the transaction, Dr. Adnan Chilwan, DIB Group Chief Executive Officer stated:
The strength of any meaningful alliance lies in shared ambition, and this collaboration with Turkish Airlines is a clear reflection of that. As the Guinness World Record holder for ‘Most Countries Flown to by an Airline’, Turkish Airlines leads with scale, vision, and elite global leadership. 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.
Turkish Airlines remains committed to developing innovative, sustainable, and globally inclusive financing solutions to drive its strategic growth, while reinforcing its leadership in the global aviation industry. This successful transaction marked another milestone in Turkish Airlines’ broader strategy to diversify its funding sources which has been a tenet of the global airline, resulting in numerous finance awards over the years.
This move is also aimed at strengthening relationships with institutions across the Gulf region and support its long-term fleet expansion targets by 2033, 100th anniversary of the flag carrier.
Source: Memac Ogilvy
