flynas sign Financing Deal for $132 million with AlJazira Bank

flynas, Saudi Arabia’s low cost carrier (LCC), on Friday signed a Murabaha financing deal for $132 million with the local Bank Aljazira to finance the purchase of three modern Airbus A320neo aircraft.

The agreement reflects flynas’ strategy to enhance cooperation between the aviation sector and local financial institutions, which contributes to the development of specialised financial products that support the growth of the Saudi financial market and provide qualitative investment opportunities for the local banking sector.

It also confirms the company’s commitment to providing priority to Saudi companies to benefit from their future expansions, which contributes to building an integrated aviation system that supports the goals of Vision 2030.

flynas Managing Director and CEO Bandar Al-Mohanna said that the agreement enhanced the partnership with the bank and other national financial institutions in providing innovative and advanced financial solutions as the carrier was planning to add more than 100 new aircraft, to its fleet over the next five years.

The airline has placed orders for 280 new aircraft valued around $157.66 billion. This is in line with the company’s strategic growth and expansion plan, launched under the slogan “We connect the world to the Kingdom,” in parallel with the objectives of the National Civil Aviation Strategy to enable national air carriers to contribute to connecting KSA with 250 International destinations and to accommodate 330 million passengers and to host 150 million tourists yearly by 2030.

The agreement comes within the framework of efforts to support the Saudi financial sector and enhance its competitiveness by developing advanced financial products that meet the needs of the aviation sector.

Following GACA Directives                     

Al-Muhanna said that the agreement was in line with the General Authority of Civil Aviation’s (GACA) directives to enhance local partnerships, develop national capabilities in the aviation sector, and cooperate with Saudi financial institutions.

It was also a continuation of a previous agreement between flynas and Saudi leasing company AviLease, which is affiliated with the Saudi Arabia’s sovereign wealth fund – Public Investment Fund – (PIF). The low cost carrier is the first company to sign an agreement to purchase and lease back 12 Airbus A320neo aircraft.

flynas is operating more than 1,500 weekly flights across 139 routes to more than 70 destinations (domestic and international) in 30 countries on board its fleet of 61 aircraft.

Since its launch in 2007, flynas has transported more than 80 million passengers on its flights, and it was ranked fourth as the best low-cost airline in the world for the second time in a row and first in the Middle East for the year 2024.