In light of its aircraft enhancement programme, Air Arabia inked an aircraft financing deal with Dubai Islamic Bank (DIB). The agreement was in effect to facilitate delivery of six new Airbus A320 aircraft in 2015.
The US$230 million Ijara facility will finance delivery of aircraft that will commence every two months from January 2015 until the year end.
Dr Adnan Chilwan, CEO of Dubai Islamic Bank, said: “The aviation sector for any country forms a critical piece not just in supporting logistics, trade and tourism but also in giving a boost to the overall economy. Partnering with Air Arabia brings about an innovative mix of quality and affordability which is closely aligned to our own strategic agenda of increasing penetration of Islamic finance across all sectors of the economy. We are confident that this deal will contribute to growth of the local economy by bringing value to both organisations.”
Elaborating further Adel Ali, group chief executive officer, Air Arabia, said: “The two key elements of Air Arabia’s successful business model are our modern fleet of aircraft and efficient use of financing to support capital expenditure requirements.”
Air Arabia has now received 29 of the 44 A320 aircraft it ordered from Airbus in 2007. Each new addition to the Air Arabia fleet is equipped with Sharklet wingtips.