AirAsia secures Islamic financing loan.
AirAsia, a budget airline based in Malaysia, has secured a USD230m Islamic loan to buy new aircraft.
The airline's deputy chief executive Kamarudin Meranum said that one of the largest Islamic banking groups, Kuwait Finance House, has taken the lead in arranging the loan. The loan is expected to pay for six of 100 Airbus A320s that AirAsia plans to acquire.
According to The Associated Press, bank officials have said that the loan is the first in the region to follow the Islamic financing principles called Ijarah Muntahiah Bitamlik. Under the Islamic structure the lender will purchase the aircraft and lease them back to AirAsia. The airline will be able to buy the aircraft for what they are worth at the time after 12 years.
((Comments on this story may be sent to firstname.lastname@example.org))
|Printer friendly Cite/link Email Feedback|
|Publication:||Airline Industry Information|
|Date:||Aug 16, 2006|
|Previous Article:||Norwegian Competition Authority to appeal ruling on SAS.|
|Next Article:||Malaysia expects aviation agreement with EU by the end of 2006.|