Bank Muscat signs $30 million loan for Oman Air fleet expansion

Published June 7th, 2001 - 02:00 GMT

Bank Muscat has extended a loan of $30 million to Oman Air to help finance its fleet expansion, a senior executive from the national carrier said Wednesday, June 6. 


The loan marks the first phase of syndication from local banks to finance Oman Air's lease-cum-purchase of five new generation Boeing 737s, the official said. 


Bank Muscat extended the loan to Oman Air on a short-term basis against a guarantee of fixed deposits and was favoured for the remaining loan requirement of around $40 million, he said. 


In February, the airline announced a purchase agreement with Boeing for two 737s and a five-year lease agreement with US-based International Lease Finance Corp. for three more 737s for delivery from December 2001. 


Founded in 1993, Oman Air is 35 percent state-owned, with the remainder held by the Omani private sector. The airline has two Airbus A320s, one Boeing 737, three Fokkers, two ATR 42s and a Twin Otter in its current fleet. — (AFP) 


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