Turkish Airlines mulls lease options for aircraft funding

Turkish Airlines Boeing 777-300ER. By Kurt Hofmann

Turkish Airlines is evaluating several financing alternatives for doubling its fleet to 400 aircraft by 2020. Reuters is reporting that Turkish is in talks with banks about a leasing arrangement worth around $300 to $500 million to help fund its orders from 2014 for each transaction.
“In addition to the conventional financing methods, Turkish Airlines is looking for innovative and different alternatives of financing for aircraft,” spokesperson Ali Genc confirmed to ATW.
“This is not limited to Enhanced Equipment Trust Certificates (EETCs), Sukuk (Islamic bonds) and Eurobond, which we have also investigated,” the spokesperson said, adding that no board decision has been made.
Turkish Airlines CEO Temel Kotil told ATW recently that every aircraft will be financed for about 12 years, mostly via finance lease. The carrier declined to comment about the financial volume of such a deal.
Last month, Turkish Airlines announced an order for 15 Boeing 777-300ERs and five options, as well as an order for 15 Airbus A330-300s.
Turkish operates 200 aircraft with an average age of six years.