Turkish Airlines seals landmark A350 finance deal with DIB

29/07/2025 04:19 AST

Turkish Airlines, the national flag carrier of Türkiye, said it has successfully executed an innovative financing transaction for an Airbus A350 aircraft with Dubai Islamic Bank (DIB).

The transaction marks Turkish Airlines' first-ever Islamic finance-backed aircraft financing, introducing shariah-compliant structures into its funding portfolio as part of its broader diversification strategy.

DIB acted as financier for the acquisition and induction of a new Airbus A350-941 into the Turkish Airlines fleet, with the transaction structured through a 12-year Islamic finance lease (Ijarah).

The deal represents a significant milestone in DIB's ongoing efforts to advance the global influence of Islamic finance.

By enabling one of the world's leading airlines to adopt a fully shariah-compliant financing structure, DIB said it reaffirms the strength, credibility, and adaptability of Islamic finance in delivering complex cross-border funding structures.

The agreement was sealed at a key ceremony held in Istanbul, in the presence of Dr Adnan Chilwan, Group Chief Executive Officer of DIB, Turkish Airlines Chairman of the Board and the Executive Committee Prof. Ahmet Bolat, and Turkish Airlines Chief Financial Officer and Member of the Board and the Executive Committee, Assoc. Prof. Murat Seker, alongside other senior executives from both organisations.

Dr Chilwan said: "At a time when global markets are rethinking the foundations of sustainable finance, this transaction sends a clear signal that Islamic finance is no longer a niche; it is a resilient and globally relevant financial structure for the future."

"For Turkish Airlines to embrace Shariah-compliant financing for the first time and to choose DIB as their Islamic finance provider reflects both the strength of our principles and the confidence they have placed in our capabilities," he stated.

"We value this collaboration deeply. It not only supports the airline's strategic growth but also reinforces the strengthening of economic ties between the UAE and Türkiye. This relationship continues to thrive on a vision rooted in mutual respect, shared ambition, and enduring cooperation," he added.

On the milestone transaction, Bolat stated: "This transaction demonstrates our commitment to financial innovation and strengthening our fleet while also marking a new chapter in our cooperation with leading institutions in the UAE and the broader Gulf region."

"We are pleased to have completed this landmark financing in collaboration with DIB and look forward to building on this partnership in the future, he added.

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