In line with its currency hedging strategy, Turkish Airlines has diversified its financing by incorporating the renminbi in its latest transaction.
The airline recently turned to the Chinese currency in financing the purchase of three Airbus A350 aircraft it acquired between May and July in a deal brokered through AVIC International Leasing and CCB Financial Leasing, a wholly-owned subsidiary of China Construction Bank. The amount of the deal was not disclosed.
The Turkish flag carrier says its experienced aircraft financing team has achieved one of the lowest financing costs in multiple currencies in the airline industry.
“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,” says Turkish Airlines chairman Ahmet Bolat.
“By adding the fifth currency to the variety of currencies used in aircraft financing, we do not only support our currency hedging strategies but also focus on keeping our financing cost at the minimum levels. We aim to continue being a pioneer in the market by adding new structures to these successful and innovative financings in the future,” adds Bolat.
The move could also help strengthen the Istanbul-based airlines’ presence in the Chinese market where it is increasing flight frequencies and coverage as well as collaboration with key partners.
Earlier this year Turkish Airlines and China’s flag carrier Air China announced the signing of a new free sale codeshare agreement, transitioning from their long-standing blocked space partnership.
