Turkish Airlines turns to US investors for financing
It is selling bonds to fund plans to double passenger numbers
Add BT as a preferred source[ISTANBUL] Turkish Airlines, whose advertisements feature sports stars including Lionel Messi and Kobe Bryant, is turning to US investors to help finance plans to double the number of passengers it carries by 2020.
The company, formally known as Turk Hava Yollari AO, has hired Goldman Sachs Group and Citigroup to sell debt backed by aircraft as it looks to increase its fleet two-fold, three people familiar with the plan said on Friday. The amount of debt to be sold could approach US$1 billion, one person said.
Airlines are broadening sources of financing amid rising global competition as Emirates Airline and Etihad Airways use their locations in the Middle East to link Europe with Asia. Airlines sold US$6.8 billion of dollar-denominated enhanced equipment trust certificates, or EETCs last year, compared with US$3.9 billion in 2012, according to data compiled by Bloomberg Industries.
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