Turkish Airlines pioneered the first financing structure using the Sompo AXIS Aviation Finance Insurance (SAAFI) Insurance Guaranteed Aviation Finance product. The agreement, which was announced at a signing ceremony in Tokyo, marks a significant milestone in aviation finance as it is the first use of the SAAFI product, which was launched earlier this year.

Under the agreement, JP Lease Japan will provide equity capital for the financing of one Airbus A350-900 and one Airbus A321-271NX aircraft to join the Turkish Airlines fleet, while Sumitomo Mitsui Banking Corporation (SMBC) will participate as a lender. The loan will be secured by 100% Insurance Guaranteed Aviation Finance provided by SAAFI insurers Sompo and AXIS. This financing structure, combined with the Japanese Equity Leasing (Jolco) model, will enable Turkish Airlines to significantly reduce its total financing costs. The Insurance Guaranteed Aviation Financing was provided through Willis under the WTW umbrella.

Commenting on the issue, Assoc. Prof. Dr. Murat Şeker, Turkish Airlines Executive Vice President in charge of Financial Affairs and Member of the Board of Directors and Executive Committee, said: "We are very pleased to be the launch customer of the SAAFI product. We launched this innovative financing model with the contributions of our valued insurers Sompo and AXIS, our insurance broker Willis, and our long-standing trusted business partners SMBC and JP Lease. As Turkish Airlines, we will continue to contribute to the development of innovative solutions that support our fleet renewal and growth strategies. Thanks to such new financing models, we increase our financial flexibility and reinforce our leadership in the industry."

Tim Gaul, Financial and Political Risks Underwriter at Sompo, said: "We are honored that a long-standing partner such as Turkish Airlines has chosen us for the first financing transaction of our SAAFI product. We have gained significant expertise in the Insurance Guaranteed Aviation Finance space, having been involved in more than 120 aircraft financings over the last eight years. Through our partnership with AXIS, SAAFI will be a strong addition to our existing product portfolio and Turkish Airlines will be the first customer to benefit from this capability."

Commenting on the agreement, Richard Jelf, Senior Underwriter at AXIS, said: "We are very proud to introduce the SAAFI product to the aviation finance market together with Sompo and to have Turkish Airlines as the first user of this product. This product is an important innovation that strengthens AXIS' product range in the field of Insurance Guaranteed Aviation Finance. We have taken another important step towards our goal of contributing to the growth of our customers and the development of the aviation industry."

Stuart Ashworth, Managing Director of Willis Financial Solutions at Willis Tower Watson, said: "We are pleased to support Turkish Airlines and SMBC in this innovative financing structure. This is also our first SAAFI transaction for Turkish Airlines, supporting a dynamic and visionary airline."