Flynas secures $132m to acquire 3 A320neo aircraft

Saudi low-cost carrier Flynas has secured a sharia-compliant loan of SAR495 million ($132 million) to acquire three Airbus A320neo aircraft, the airline said in a statement.

The funding has been provided by Bank AlJazira, which trades on the Saudi stock exchange, the statement said.

The new aircraft are expected to support Flynas’s network coverage, improve operational efficiency, leading to the growth of the Saudi aviation sector.

 In July 2022, Aircraft Leasing Company (AviLease), a subsidiary of the Public Investment Fund (PIF), signed its first leasing agreement with Flynas to purchase 12 new A320neo aircraft and lease them to the local low-cost airline.

Last month Talal Al Maiman, CEO of the airline’s part-owner Kingdom Holding, said Flynas is likely to receive approval soon from the market regulator for a planned listing on the Riyadh stock exchange.

Flynas chief executive Bander Al Mohanna confirmed last year that the airline was planning an IPO and had hired Goldman Sachs Group, Morgan Stanley and Saudi Fransi Capital for the potential listing.

The carrier is planning a major expansion in the coming years, agreeing an order of as many as 160 Airbus aircraft at Farnborough International Airshow in July last year, bringing its total order to 280 aircraft. 

Kingdom Holding holds a 37 percent stake in Flynas, formerly known as Nas Air. PIF holds a 17 percent stake.