Jazeera Airways Group secures USD90 million in aircraft funding from Kuwait’s NBK, and DVB Bank SE

The National Bank of Kuwait (NBK), DVB Bank, and Jazeera Airways Group (JAG) today announced a USD90 million commercial facility for funding JAG’s aircraft purchases through a structured facility led by NBK and DVB Bank SE. 

The loan, which has a 12-year term, is employed to fund the purchase of three brand new Airbus A320 aircraft, one of which was already delivered earlier this month. 

NBK Kuwait CEO Sheikha K. Al-Bahar said, “NBK’s relationship with Jazeera Airways Group dates back to the very early days of the company’s success. In 2008 NBK managed the company’s IPO and we’ve continued to support the company’s various funding requirements since then. Today Jazeera Airways is one of the few success stories to come out of the Middle East over the last decade. We are proud to be part of the airline’s success story.” 

DVB Bank SE Member of the Board of Managing Directors Bertrand Grabowski said, “Our relationship with Jazeera Airways Group dates back to June of 2005 when DVB Bank SE was part of the original group of banks to fund the airline’s first four aircraft. Eight years later, it is a pleasure to witness the very airline that we helped seed in 2005 transform into the market-leading and profitable airline it is today.” 

Jazeera Airways Group Chairman Marwan Boodai said, “With this deal, we have secured our funding requirements for the coming two years. NBK and DVB Bank SE are true long-term partners in our business and we are humbled by their continued support for our operations.” 

To date, Jazeera Airways Group has taken delivery of 13 Airbus A320s since 2005, as part of an order for 15 aircraft of the same type. The remaining two aircraft of the order are scheduled to be delivered in October 2013 and May 2014. 

The three new aircraft are in-line with the airline’s growth strategy to always operate new and modern aircraft, and to take on new aircraft deliveries until the end of 2014 in parallel to Kuwait’s overall market growth. 

The Airbus A320 is the world’s best-selling aircraft. There are over 5,500 A320 aircraft in operation by airlines across the world, and over 3,900 aircraft scheduled for delivery over the coming years. The A320 single-aisle jetliner family is the world’s most eco-efficient single-aisle product line. It is used for a full range of services from very short-haul airline routes to intercontinental segments. 

Jazeera Airways Group is a Kuwait Stock Exchange-listed company with a fleet of 13 fully-owned Airbus A320s, through its airline business, Jazeera Airways (operating seven aircraft), and its fully-owned leasing-arm Sahaab Aircraft Leasing (operating six aircraft).  Sahaab has its aircraft assets placed with Virgin America, SriLankan Airlines, Nasair and Jazeera Airways. 

Jazeera Airways operates its seven fully-owned Airbus A320s with a two-class cabin comprising a Business Class and an Economy Class.  Business Class travelers get both an upgraded experience and exclusivity, starting with exclusive check-in lines, business lounge access, up to 60 kilograms in free baggage allowance, and an exclusive on-board cabin.  The airline’s Economy Class offers travelers free baggage allowance of 40 kilograms and free on-board meals with a changing menu every month. 

Jazeera Airways is based in Kuwait and serves 19 popular destinations in the Middle East from Kuwait comprising high-demand business, leisure, family, and weekend destinations such as Dubai, Bahrain, Beirut, Alexandria, Amman, Istanbul, Sharm El Sheikh, Assiut, Luxor, Mashhad, Sohag, Jeddah, Riyadh, Cairo and Al Najaf. 

Jazeera Airways is an IATA-member airline and operates one of the youngest Airbus A320 fleets in the Middle East.