Turkish Airlines pioneers by securing Chinese Yuan denominated aircraft financing outside China, enhancing its diverse financing portfolio and supporting its currency hedging strategies.
Turkish Airlines becomes the first airline to secure Chinese Yuan denominated aircraft financing outside of China, marking a significant milestone in its innovative financing strategies. Flying to more countries than any other airline, Turkish Airlines continues to expand its financial portfolio in line with its natural currency hedging policy, supported by its diversified revenue structure.
The financing for three Airbus A350 aircraft, which joined the airline’s fleet between May and July 2024, was secured in Chinese Yuan through partnerships with AVIC International Leasing and CCB Financial Leasing. This achievement underscores Turkish Airlines’ strategic growth in the Chinese market, evidenced by increased flight frequencies and collaborations with key partners in the region.
Turkish Airlines Chairman of the Board and Executive Committee, Prof. Ahmet Bolat, commented on this milestone, stating, “As Turkish Airlines, we have added another achievement to our successes in aircraft financing by becoming the first airline to secure aircraft financing in Chinese Yuan outside of China. By adding the fifth currency to the variety of currencies used in aircraft financing, we not only support our currency hedging strategies but also focus on minimizing our financing costs. The interest and support from our Chinese business partners in this transaction highlight the mutual trust and collaboration between our countries. We aim to continue pioneering in the market by introducing new and innovative financing structures in the future.”
This move by Turkish Airlines reflects its commitment to maintaining a robust and diversified financing strategy. With an experienced aircraft financing team, the airline has achieved some of the lowest financing costs in multiple currencies within the industry. Turkish Airlines’ innovative financing models have garnered numerous accolades from prestigious organizations such as Global Transport Finance, Airline Economics, Airfinance Journal, and Bonds, Loans & Sukuk. Over the past decade, the airline has secured over 30 international aircraft finance awards, recognizing successful transactions amounting to approximately 16 billion USD.
By securing aircraft financing in Chinese Yuan, Turkish Airlines not only supports its currency hedging strategies but also enhances its financial resilience and flexibility. This landmark transaction sets a precedent for future financing endeavors and solidifies Turkish Airlines’ position as a leader in aviation finance.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor’s degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
