Air Arabia inks $350m financing deal for planes

UAE-based low-cost carrier signs agreement to support acquisition of 10 new A320s

UAE-based low-cost carrier Air Arabia has announced that it has signed a $350m finance deal from a syndicate of two GCC banks to support the acquisition of 10 new Airbus A320 aircraft.

The budget airline signed the deal with senior representatives of Qatar National Bank and UAE-based Commercial Bank International, it said in a statement.

The financing facility is to support the purchase of 10 new aircraft, which is part of a larger order for 44 A320s placed with Airbus in 2007.

Air Arabia, UAE's only publicly-listed carrier, earlier this month reported a 20 percent rise in first quarter net profit.

The Sharjah-based airline made a net profit of AED59m ($16.06m), compared with AED49m in the same period in 2012.

Revenue for the quarter rose 22 percent to AED722m, Air Arabia said, adding passenger traffic during the period was up 18 percent.

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