Airbus signs MoU on aircraft financing with Abu Dhabi partner

Abu Dhabi: Airbus said on Thursday it has signed a Memorandum of Understanding (MoU) on cooperation in aircraft financing and leasing with Abu Dhabi National Leasing Company (ADNL), the wholly owned lease finance arm of the National Bank of Abu Dhabi (NBAD).

As a part of the deal, ADNL and Airbus will share competence and experience to cooperate on leasing projects, financing projects and management activities, such as structuring operating and finance lease transactions, pre-delivery payment financing for Airbus aircraft and delivery financing of new and used Airbus aircraft, the French plane manufacturer said in a statement.

Also, under the agreement, ADNL will facilitate and provide aircraft delivery financing solutions to airlines in the Gulf Cooperation Council (GCC) region for the acquisition of aircraft ordered from Airbus. And in addition, the leasing company will provide financing support by way of sale and leaseback transactions with its airline customers for Airbus aircraft.

“We believe that the airlines in the UAE have been the catalyst for transforming and expanding the air transportation to and from the UAE,” Yousuf Abdullah Yousuf, Managing Director of ADNL, said in a statement. He added that the deal will increase cooperation between the two organizations and drive forward aviation initiatives to make Abu Dhabi a regional hub for the aviation business.

The aviation industry contributes more than Dh145 billion to the UAE economy, justifying the region’s huge investments in airports and airline networks, Yousuf said.

“In the current economic environment, investment in aircraft remains a very attractive proposition and we are pleased to expand our relationship with new players such as NBAD and ADNL,” said Harald Wilhelm, CFO, Airbus & EADS, adding that Airbus’ modern portfolio of aircraft is delivering an “excellent return on investment” besides great value for money to customers.