Turkish Airlines has recently made headlines by closing the delivery of an Airbus 350-900 aircraft, a significant step in its fleet expansion strategy. The transaction was facilitated by Natixis CIB, which acted as the lead arranger and debt underwriter. This move is part of Turkish Airlines' ambitious plan to double its fleet to 800 aircraft over the next decade, underscoring its commitment to growth and modernization.
According to Deniz Billion, Executive Director of Aviation Finance for EMEA at Natixis, this financing deal is not just about acquiring new aircraft; it also plays a crucial role in the airline's strategy to reduce its carbon footprint. "By rejuvenating their fleet with new generation fuel-efficient aircraft, the airline aims to reduce its carbon footprint per miles flown, an important axis for us, as founding member of IMPACT-on-sustainable-aviation," Billion stated.
The financing structure utilized for this transaction is known as JOLCO (Japanese Operating Lease with Call Option), which combines senior debt with Balthazar insurance. This innovative insurance product, developed by Airbus and Marsh, is designed to support Airbus deliveries and is backed by a consortium of leading insurers. The JOLCO structure effectively leverages the interest from Japanese investors in the aviation sector while the Balthazar insurance acts as a credit enhancer for senior lenders.
By combining the JOLCO scheme with Balthazar insurance, Turkish Airlines has achieved a 100% financing solution, marking a first for the airline. Billion expressed pride in arranging this deal, stating, "We take great pride in supporting the airline on its journey of expansion." Natixis has extensive experience in arranging JOLCO structures for major airlines, which has been enhanced by the opening of a new branch in Tokyo in 2023, aimed at providing bespoke Japanese-linked financial solutions.
While Turkish Airlines is making strides in fleet expansion, the airline is also facing challenges on the labor front. The National Union of Air Transport Employees (NUATE) has issued a warning to Turkish Airlines against victimizing staff who are union members. During the 2025 Workers’ Day celebration, NUATE President, Comrade Ben Nnabue, voiced concerns regarding several pressing issues within the aviation industry.
Nnabue emphasized the union's commitment to protecting workers' rights and criticized domestic airlines for denying workers the right to belong to trade unions. "We remain committed to fighting for the rights and interests of aviation workers, ensuring a stronger and more prosperous industry for all," he declared.
This warning to Turkish Airlines is part of a broader call to action for improved labor practices in the aviation sector. NUATE's stance reflects a growing concern among workers regarding their rights and the treatment they receive from employers. The union is urging relevant authorities to address these issues to foster a more equitable work environment.
The juxtaposition of Turkish Airlines' ambitious expansion efforts with the labor concerns raised by NUATE highlights the complexities facing the airline industry today. On one hand, Turkish Airlines is pushing forward with significant investments in its fleet, which is essential for maintaining competitiveness in a rapidly evolving market. On the other hand, the need for fair labor practices and respect for workers' rights cannot be overlooked.
As Turkish Airlines continues to grow, it will be essential for the airline to balance its operational goals with the welfare of its employees. The ongoing dialogue between management and labor unions will be crucial in shaping the future of the airline and ensuring that its growth does not come at the expense of its workforce.
In conclusion, the recent delivery of the Airbus 350-900 marks a pivotal moment for Turkish Airlines, as it embarks on a path of expansion and modernization. However, the airline must also navigate the challenges posed by labor relations, ensuring that its progress is inclusive and equitable for all stakeholders involved.
