In a bid to "address the need for innovation in the aircraft financing market", Turkish Airlines has become the first airline to use a new insurance-backed aircraft financing product called Balthazar. The product was developed by Airbus, with a consortium of highly-rated insurance companies,
Turkish Airlines used Balthazar, combined with a French lease advantage, in a 12-year transaction for the purchase of five Airbus A321 NEO aircraft to be delivered in 2019. BNP Paribas, a long-term partner of Turkish Airlines, facilitated the first-of-a-kind transaction and committed financing of up to $225 million.
The airline believes the new structure contributes significantly to the overall competitiveness of its aircrafts' financing portfolio. Turkish Airlines' innovative and cost-effective financing of $15 billion in aircraft purchases or leases has seen it win 23 international aircraft finance awards in the last ten years.
Some of the airline's innovations over the years: