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Dublin, Ireland – In a groundbreaking move that marks a significant milestone for Islamic finance in the aviation sector, Turkish Airlines (THY), Turkey’s national flag carrier, has announced a landmark €3.4 billion financing agreement with Dubai Islamic Bank (DIB). This deal, the airline’s first foray into Islamic finance, will fund the acquisition of new Airbus A350 aircraft, bolstering THY's expanding long-haul fleet and solidifying its position as a leading global airline.

The agreement, unveiled on Monday, signifies a growing trend towards Sharia-compliant financing options for major corporations worldwide. DIB, a leading Islamic bank based in Dubai, will provide the financing based on principles that adhere to Islamic law, avoiding interest-based transactions and ensuring ethical investments. Details of the specific structure of the deal remain somewhat confidential, but it's understood to involve a combination of Murabaha (cost-plus financing) and Ijara (leasing) structures.

Why This Deal Matters:

• Significant Investment: €3.4 billion is a substantial investment, demonstrating Turkish Airlines' commitment to fleet modernization and expansion.
• Islamic Finance Pioneer: This is the first Islamic finance deal for Turkish Airlines and a notable achievement for DIB, showcasing the bank's ability to structure complex transactions compliant with Sharia principles.
• Growing Trend: The deal reflects the increasing global acceptance and utilization of Islamic finance as a viable funding source for large-scale projects.
• Enhanced Connectivity: The new Airbus A350s will enable Turkish Airlines to expand its network and offer enhanced connectivity to destinations across the globe, particularly in Asia and the Americas.

Airbus A350: A Game-Changer for Turkish Airlines

The Airbus A350 is renowned for its fuel efficiency, long range, and passenger comfort. Featuring advanced technologies and a modern cabin design, the A350 will significantly improve Turkish Airlines’ operational efficiency and enhance the passenger experience. The airline plans to integrate the new aircraft into its existing long-haul routes, further strengthening its competitive advantage in the global aviation market.

“This financing agreement with Dubai Islamic Bank is a testament to Turkish Airlines’ financial strength and our commitment to exploring innovative funding solutions,” stated a spokesperson for Turkish Airlines. “We are confident that the addition of Airbus A350s to our fleet will further enhance our operational capabilities and provide our passengers with an even more enjoyable travel experience.”

Dubai Islamic Bank echoed this sentiment, stating that the deal represents a strategic partnership and a commitment to supporting the growth of the aviation industry through Sharia-compliant financial solutions. The bank anticipates further collaborations with Turkish Airlines and other leading companies in the region.

The deal is expected to be finalized in the coming weeks, with deliveries of the Airbus A350s commencing in the near future. Analysts predict that this transaction will pave the way for other airlines in the region to explore Islamic finance options, further expanding the reach and influence of this rapidly growing financial sector.