Turkish Airlines has become the first airline to use the Sompo AXIS Aviation Finance Insurance (SAAFI), aviation non-payment insurance (ANPI) product to finance new aircraft deliveries.
The transaction, closed in Tokyo, marks the first time SAAFI has been mandated, following its launch earlier this year.
Under the terms of the mandate, JP Lease will arrange equity and SMBC will provide the debt to Turkish Airlines for the delivery of one A350-900 and one A321-271NX aircraft, which are both expected to be delivered to the Turkish flag-carrier in 2026.
SMBC’s loan is supported 100% with an ANPI policy provided by the SAAFI insurers, Sompo and AXIS.
Tim Gaul, financial and political risks underwriter at Sompo, said this partnership with AXIS through SAAFI will be a “welcome addition” to the company’s current suite of aviation financing products available. The policy was brokered by Willis.
"We are pleased to be the launching customer of SAAFI with the support of our valued insurers Sompo and AXIS, Insurance broker Willis, our long-term business partners SMBC and JP Lease,” said Murat Şeker, Turkish airlines chief financial officer and member of the board and the executive committee. “With financing models like SAAFI, we not only enhance our financial flexibility and resilience but also reinforce our leadership in the industry.”
This use of the SAAFI ANPI product, in connection with a Japanese operating lease with call option (JOLCO) structure, has allowed Turkish Airlines to significantly lower its all-in cost of financing.