Will the $10 Billion Boeing and Airbus Deal Hit Kazakhstan’s Aviation Sector?

The purchase of 15 new Boeing aircraft and 50 Airbus aircraft worth nearly $10 billion will not create financial problems for Air Astana, the company’s new CEO said, Orda.kz reports.

According to him, the airline uses special financing schemes commonly used by major global carriers.

If you look at it globally, Air Astana has one of the strongest balance sheets among airlines. When buying aircraft, we use special financing schemes through export credit agencies — for example, Eximbank in the U.S. or ECAs in Europe,Canliel said.

He noted that payments will be spread over several years and made gradually, closer to the delivery date of each aircraft.

Usually, the term of such financing is 10 to 15 years. Therefore, this is not a case where the airline has to pay the full $10 billion at once,the CEO said.

The renewal of Air Astana’s fleet has already raised many questions. Last year, the company announced a major purchase of Boeing and Airbus aircraft, but some deliveries were delayed. Later, the airline postponed the delivery of three Boeing Dreamliners because of problems at manufacturers and a shortage of aircraft.

Earlier, Orda.kz reported that following President Kassym-Jomart Tokayev’s official visit to Washington, the two sides signed several agreements worth $17 billion. One of the largest concerns the leasing of 15 Boeing 787-9 aircraft. It recently became known that Air Astana had begun preparing for the deal.

Original author: Alina Elgeldina

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