Turkish Airlines is reportedly planning to raise $3bn to fund the purchase of Airbus and Boeing aircraft.
The carrier is in negotiations with various banks for loans with a maturity of 12 years, and a life span of minimum five years.
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Sources familiar with the matter were quoted by Reuters as saying that the airline is exploring multiple financing options, such as commercial loans and Islamic financing, among others.
Turkish Airlines is ready to accept loan proposals in multi-currencies and with floating and fixed interest rates.
Financial institutions have been asked to submit proposals by 27 July.
The European Export Credit Agency (EECA) will provide a guarantee for 85% of the financing for Airbus aircraft, while the Export-Import Bank of the US will give a guarantee for the potential purchase of Boeing aircraft, and a General Electric spare engine, the sources added.
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By GlobalDataTurkish Airlines is scheduled to receive 17 aircraft from Airbus in 2016, including ten A321-200s, five A330-300s and two A330-200Fs.
Boeing will deliver 26 aircraft, including 20 B737-800s, six B777-300ERs as well as a GE engine.
As of June, the airline has a fleet of 282 aircraft.
In 2013, Turkish Airlines signed contracts for 95 Boeing and 117 Airbus narrow-body aircraft, which are scheduled to be delivered throughout 2021, reported Bloomberg Businessweek.
By the end of 2021, the carrier is expected to operate a fleet of 440 aircraft.
Image: A Turkish Airlines’ A330 in flight. Photo: courtesy of Turkish Airlines.
