RIYADH: Saudi Arabia’s budget carrier flynas has signed a SR504 million ($134.4 million) Murabaha facility with Saudi Awwal Bank to finance the delivery of new Airbus A320neo aircraft, strengthening its ongoing fleet expansion drive.
According to a bourse disclosure, the 12-year facility — finalized on Aug. 28 — is secured by promissory notes, aircraft mortgages, and the assignment of insurance, reinsurance, and warranty rights tied to the airframes and engines.
The funding supports flynas’ broader aircraft acquisition program, which includes 195 narrow-body planes — 159 A320neo and 36 A321neo models — under its existing purchase agreements with Airbus.
The deal follows another SR495 million Murabaha financing signed in February with Bank AlJazira to fund the acquisition of three Airbus A320neo aircraft. The agreement marked a step toward deepening collaboration between the aviation and financial sectors, while prioritizing Saudi institutions in future growth initiatives.
In its filing, the airline described the latest facility as a key milestone in advancing its fleet expansion plans, enabling it to meet rising passenger demand, boost operational efficiency, and support broader capital restructuring initiatives.
“It also reflects flynas’ commitment to aligning with the rapid growth of the aviation sector in the Kingdom, driven by the Saudi Vision 2030 programs, which aim to position the Kingdom as a global hub for travel, tourism, and logistics,” the carrier added.
This facility aligns with earlier developments in flynas’ ongoing fleet expansion strategy.
In July 2024, the airline signed a landmark agreement with Airbus for 160 aircraft—comprising 130 A320 family jets and 30 A330neo wide-bodies — bringing its total order book to 280 aircraft.
It also signed a separate memorandum of understanding for 75 A320neo and 15 A330-900 aircraft.
In recent months, flynas has taken delivery of several A320neo jets, bringing the total number in its fleet to 57 as of May.
The airline expects to receive over 100 additional Airbus aircraft by 2030, with wide-body deliveries beginning in 2027.
These moves support flynas’s ambition to expand its domestic and international network while enhancing service quality and operational efficiency.
In June, flynas finalized its initial public offering, pricing shares at SR80 apiece, the top of its indicated range, giving the airline a market capitalization of SR13.6 billion.
The offering — the first airline IPO in the Gulf in nearly two decades — saw heavy demand, with institutional investors oversubscribing by around 100 times and retail investors by 350 percent.
