Turkish Airlines has become the first airline to use the newly launched Sompo AXIS Aviation Finance Insurance (SAAFI) product for financing, marking a milestone in aviation insurance. The deal was formalized at a signing ceremony in Tokyo, Japan.
Under the agreement, JP Lease will arrange equity financing, while Sumitomo Mitsui Banking Corporation (SMBC) will provide debt financing for the delivery of two aircraft—a Boeing A350-900 and an A321-271NX—expected in 2026. SMBC’s loan is fully backed by Aviation Non-Payment Insurance (ANPI) underwritten by Sompo and AXIS through the SAAFI product. This innovative use of SAAFI within a Japanese Operating Lease with Call Option (JOLCO) structure has helped Turkish Airlines significantly reduce its financing costs. The policy was brokered by Willis, a WTW business.
Assoc. Prof. Murat Şeker, Turkish Airlines CFO and Board Member, said, “We are proud to be the launching customer of SAAFI. This innovative financing model enhances our financial flexibility and supports our growth and fleet renewal strategies. It reinforces our leadership in the industry.”
Tim Gaul, Financial and Political Risks Underwriter at Sompo, highlighted Sompo’s aviation insurance expertise, adding, “Partnering with AXIS through SAAFI provides new capacity and complements our global experience in aircraft financing. Turkish Airlines is the first of many customers who will benefit.”
Richard Jelf, Senior Underwriter at AXIS, noted, “SAAFI is a valuable addition to the Aircraft Non-Payment Insurance market. We are excited to launch this product with Turkish Airlines as our first customer.”
Stuart Ashworth, Managing Director of Financial Solutions at Willis, commented, “This innovative financing solution suits Turkish Airlines perfectly. We are pleased to support them and SMBC in this landmark transaction.”
