Etihad Seeking Over $2 Billion In Loans To Finance Plane Purchases


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Etihad Airways is said to be in talks with banks to secure $2.6 billion in loans to finance aircraft purchases from Airbus and Boeing.

The airline is hoping to finance 10 Dreamliner aircraft from Boeing for $200 million and an additional $600 million for the purchase of two Airbus A380s, according to a report by Bloomberg.

The airline is in the middle of a transition that has seen it announce the departure of Group CEO James Hogan as well its CFO in May 2017, borne out of difficulties in getting its European businesses to turn a profit.

Etihad has added nearly tripled its fleet and staff in the past eight years.

But a low oil price environment has forced it, as well as Emirates, to announce job cuts in December, with Etihad citing the move to “reduce costs and improve productivity and revenue.” Another low-cost carrier, Flydubai, is also said to be in negotiations with banks for loans to fund operational infrastructure improvements.