Qatar Airways receives major financing pledge for new Airbus A320s
Company Press Release:
Barclays Capital, the investment banking division of the Barclays Group, has joined with Germany’s HypoVereinsbank and Qatar National Bank to arrange the financing of six new Airbus A320s for Qatar Airways. The aircraft are due for delivery between late 2001 and mid 2003.
Under the deal, the banks are making available up to 100 percent of the value of the new aircraft together with a facility to provide pre-delivery progress payments to Airbus Industry. Aircraft Leasing & Management Ltd advised Qatar Airways of the financing.
"Qatar Airways operates one of the youngest fleets in the Middle East and, to sustain the airline’s growth strategy, we are investing strongly in new aircraft, as well as new products and customer services. The new Airbus acquisition is an important part of our fleet renewal program," said Akbar Al-Baker, Qatar Airway’s Chief Executive Officer.
The airline, which is 50 percent owned by the State of Qatar—with the majority of the remaining 50 percent owned by Qatar Insurance Company and prominent Qataris—flies to 26 destinations worldwide, in the Middle East, Europe and Indian Sub-continent. New services to Bahrain, Bangkok and Manila were launched in spring 2000 and a new route to Paris will begin on 1 November 2000.
"This is Qatar Airways’ first foray into the international financing market," said Surinder Sarna, General Manager, Finance and Administration, Qatar Airways. "We went through a rigorous selection procedure and granted the mandate on the basis of experience, pricing and attractiveness of the total package."