Turkish Airlines (THY) has become the first airline outside of China to finance aircraft in Chinese yuan. The financing for three Airbus A350 aircraft, added to their fleet in May and July this year, was arranged through AVIC International Leasing and CCB Financial Leasing in Chinese yuan.
Financing with a New Currency
Incorporating Chinese yuan into its financing portfolio, Turkish Airlines achieved a milestone as part of its strategy to leverage various foreign currencies and natural hedging. As Turkish Airlines continues to expand in the Chinese market, it has also diversified its financing portfolio both geographically and in terms of currency by collaborating with leading financiers in China.
Hedging Against Currency Risk
Prof. Dr. Ahmet Bolat, Chairman of the Board and Executive Committee of Turkish Airlines, highlighted the uniqueness of this financing method. He stated, “As Turkish Airlines, we have added a new achievement to our successes in aircraft financing by being the first airline outside of China to finance aircraft in Chinese yuan.” Bolat emphasized that this approach aims to hedge against currency pressures and maintain financing costs at minimal levels.
Prof. Dr. Bolat noted that the interest shown by Chinese partners in this innovative financing model demonstrates mutual trust between institutions and international cooperation. He expressed that Turkish Airlines intends to continue pioneering in the industry by adding more successful and innovative financing solutions in the future.
Financing Achievements
The aircraft financing team at Turkish Airlines has achieved some of the industry’s lowest financing costs through transactions in various foreign currencies. The team has also earned annual financing awards from globally renowned organizations such as “Global Transport Finance, Airline Economics, Airfinance Journal, and Bonds, Loans & Sukuk” with their creative financing models. Over the past decade, Turkish Airlines has conducted approximately $16 billion in financing transactions, winning over 30 international financing awards and solidifying its top position in this field.
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