Turkish Airlines implements SAAFI insurance for the first time for financing new aircraft

Turkish Airlines announced the inaugural implementation of the SAAFI (Sompo AXIS Aviation Finance Insurance) product as part of a new financing structure for aircraft acquisitions. The agreement, signed in Tokyo, represents the first official use of SAAFI's Aviation Default Insurance (ANPI) since its launch in early 2025.

Under the agreement, JP Lease will contribute equity, while Sumitomo Mitsui Banking Corporation (SMBC) will provide debt financing for the purchase of an Airbus A350-900 and an A321-271NX, scheduled for delivery in 2026. The loan will be fully backed by an ANPI policy issued by SAAFI, in collaboration with insurers Sompo and AXIS. The transaction is part of a Japanese operating lease with purchase option (JOLCO), allowing the airline to significantly reduce its total financing costs. The policy was brokered by Willis, a subsidiary of WTW Group (NASDAQ: WTW).

Murat Şeker, Turkish Airlines' Chief Financial Officer and member of the Board of Directors and Executive Committee, expressed his satisfaction with leading this financial innovation. “We are pleased to be SAAFI's launch customer, alongside our insurers Sompo and AXIS, our broker Willis, and our long-term partners SMBC and JP Lease. This financing model strengthens our financial flexibility and supports our growth and fleet renewal strategies,” he noted.

From Sompo, Tim Gaul, Financial and Political Risk Underwriter, highlighted the company's expertise in secured aircraft financing, having participated in more than 120 transactions worldwide in the last eight years. "The alliance with AXIS through SAAFI will be a key complement to our current product offering," he stated.

For his part, Richard Jelf, senior underwriter at AXIS, underscored the strategic value of the new product. “SAAFI represents a significant addition to our aircraft default insurance portfolio, and Turkish Airlines is an ideal partner for this initial phase,” he said.

Finally, Stuart Ashworth, General Manager of Financial Solutions at Willis, emphasized the significance of this pioneering transaction. "This is an innovative financing solution that aligns with Turkish Airlines' dynamic and visionary profile," he concluded.