Jazeera secures $90m loan for buying aircraft
Kuwait, June 17, 2013
Kuwait-based budget carrier Jazeera Airways Group said it has secured a $90 million loan from National Bank of Kuwait (NBK) and DVB Bank for funding its aircraft purchases.
The 12-year term loaan will help Jazeera fund the purchase of three brand new Airbus A320 aircraft, one of which was already delivered earlier this month.
Commenting on the funding, Jazeera Airways Group chairman Marwan Boodai said, “With this deal, we have secured our funding requirements for the coming two years. NBK and DVB Bank SE are true long-term partners in our business and we are humbled by their continued support for our operations.”
To date, Jazeera has taken delivery of 13 Airbus A320s since 2005, as part of an order for 15 aircraft of the same type. The remaining two aircraft of the order are scheduled to be delivered in October 2013 and May 2014.
The three new aircraft are in-line with the airline’s growth strategy to always operate new and modern aircraft, and to take on new aircraft deliveries until the end of 2014 in parallel to Kuwait’s overall market growth, he added.
NBK Kuwait CEO Sheikha K. Al-Bahar said, “Our relationship with Jazeera dates back to the very early days of the company’s success. In 2008, NBK managed the company’s IPO and we’ve continued to support the company’s various funding requirements since then."
"Today Jazeera Airways is one of the few success stories to come out of the Middle East over the last decade. We are proud to be part of the airline’s success story," she added
DVB Bank SE member of the board of managing directors Bertrand Grabowski said, “Our relationship with Jazeera dates back to June of 2005 when we became a part of the original group of banks to fund the airline’s first four aircraft. Eight years later, it is a pleasure to witness the very airline that we helped seed in 2005 transform into the market-leading and profitable airline it is today.”
An IATA-member airline, Jazeera operates one of the youngest Airbus A320 fleets in the Middle East.
It serves 19 popular destinations in the Middle East from Kuwait including Dubai, Bahrain, Beirut, Amman, Istanbul, Sharm El Sheikh, Mashhad, Jeddah, Riyadh, Cairo and Al Najaf.-TradeArabia News Service
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