Etihad Airways Backed By Korean Investors
Etihad Airways, state-owned by Abu Dhabi has signed a financial agreement with Korean investors which will cover the cost of an Airbus A380 superjumbo which has a price of approximately £290 million.
The agreement is a 15-year full-payout lease, basically meaning that the aircraft will be recorded as an asset by Etihad Airways rather than an operating lease where it wouldn’t be.
Usually a bank would finance 85% of the cost of an aircraft adhering to risk exposure limits, so this deal stands out particularly due to Etihad securing 100% via the Korean investors.
This Airbus adds to the other eight A380’s Etihad have on order, with the total amount of being valued at approximately £19.5 billion.