Abu Dhabi-based carrier Etihad Airways PJSC is in talks with banks to raise about $2.6 billion in loans to finance aircraft deliveries, according to three people familiar with the matter.
The airline is seeking to raise $2 billion in 12-year loans for 10 Boeing Co. Dreamliner aircraft and about $600 million in financing for two Airbus Group SE A380 superjumbos, said the people, asking not to be identified because the discussions are private.
Separately, low-cost carrier FlyDubai is in early talks with Emirates NBD PJSC, Noor Bank PJSC and Union National Bank PJSC for a club loan “to supports its infrastructure requirements”, a spokeswoman for the airline said, without detailing how much it plans to raise. The carrier, which currently operates out of Dubai International Airport and Al Maktoum International Airport, is due to move all of its operations to Al Maktoum this year.
FlyDubai and Etihad are seeking to raise the funds as carriers based in Persian Gulf countries feel the impact of weakening global economies and a prolonged drop in oil prices. Etihad last month said it will eliminate jobs across several units as part of an organizational review and restructuring after almost tripling its staff to 20,292 in the past eight years, as its fleet expanded to 122 aircraft from 42.
Etihad said it doesn’t comment on market rumors.