Oman Air, the national carrier of the Sultanate, has awarded a $52 million financing deal to BankDhofar, one of the country’s leading banks.

The deal, which is structured as a medium-term loan and was carefully fine-tuned to meet the specific needs of Oman Air, will finance the purchase of two Embraer E175 aircraft.

Oman Air has taken delivery of these two aircraft as a part of package of five Embraer E175 aircraft it has purchased from the Brazilian manufacturer. The new aircraft will help Oman Air strengthen and further expand its regional and domestic network, it said.

Peter Hill, chief executive officer at Oman Air, said: “Oman Air is pleased to award this deal to BankDhofar, and will continue to invite local banks to participate in similar opportunities in future.”

Japeen Shah, chief financial officer at Oman Air, added: “Oman Air invited all local banks to bid for this financing arrangement and BankDhofar was selected as it (has) offered most cost effective solution. This is the second time a local bank has participated in aircraft financing for Oman Air. The airline has plans to acquire more aircraft in the near future and will once again approach local banks to finance the purchase of these aircraft. We will also seek financing from the banks for Oman Air’s infrastructure requirements.”

Oman Air has witnessed rapid growth in recent years. In addition to expanding its network of exciting global destinations, the airline has increased the size of its fleet to include seven Airbus A330s, as well as the new Embraer aircraft. In addition, Oman Air has six Boeing 787 Dreamliners on order for delivery as from 2015.

The expansion of Oman Air’s fleet and network, together with its focus on delivering the highest levels of quality and value, have seen the airline carry more passengers than ever before, as well as increase its revenues significantly. In 2010, Oman Air carried 3.3 million passengers - up 38 per cent on the previous year - and recorded a 40 per cent increase in turnover.

Mohammed Redha A Jawad, acting CEO, Bank Dhofar, said: “BankDhofar has great experience of syndicating or solely funding large ticket loans at competitive terms and structuring them to suit the needs of the corporate clients. The deal with Oman Air is an excellent example of how our Corporate Banking and Project Finance teams develop outstanding working relationships and structure tailor made solutions which meet the needs of our clients and support the growth of the corporate sector in Oman.” –TradeArabia News Service