Turkish Airlines First to Use Sompo AXIS Aviation Finance Insurance for New Aircraft

Turkish Airlines has pioneered a groundbreaking move in aviation finance by adopting a newly launched insurance product—Sompo AXIS Aviation Finance Insurance (SAAFI), Aviation Non-Payment Insurance (ANPI). This marks the first-ever mandate of the SAAFI structure since its debut earlier this year. The announcement was made during a formal signing ceremony held in Tokyo, Japan, highlighting the airline’s strategic commitment to innovative financing solutions.

Strategic Financing Structure Backed by Leading Institutions

As part of the deal, JP Lease has been tasked with arranging the equity portion, while Sumitomo Mitsui Banking Corporation (SMBC) will provide the debt financing. This arrangement will support the acquisition of two aircraft by Turkish Airlines—a wide-body Airbus A350-900 and a narrow-body A321-271NX, scheduled for delivery in 2026.

Insurance-Backed Lending Reduces Financing Costs

SMBC’s loan facility is fully covered by an ANPI policy issued by the SAAFI insurers, Sompo and AXIS. This marks a notable deployment of the SAAFI ANPI product in a Japanese Operating Lease with Call Option (JOLCO) structure. The integration of this insurance-backed model has enabled Turkish Airlines to secure more favourable financing terms, effectively lowering its overall borrowing costs.

Brokered by Global Risk Advisor Willis Towers Watson

The ANPI policy was brokered by Willis, part of the global advisory and broking firm WTW (NASDAQ: WTW). Their involvement underscores the increasing role of risk management solutions in transforming the economics of aircraft financing in today’s competitive aviation landscape.

"We are pleased to be the launching customer of “SAAFI” with the support of our valued insurers Sompo and AXIS, Insurance broker Willis, our long-term business partners SMBC and JP Lease. As Turkish Airlines, we are committed to participating in the development of innovative solutions that support our growth and fleet renewal strategies. With financing models like SAAFI, we not only enhance our financial flexibility and resilience but also reinforce our leadership in the industry,” said Assoc. Prof. Murat Şeker, Turkish Airlines Chief Financial Officer and Member of the Board and the Executive Committee.

Tim Gaul, Financial and Political Risks Underwriter at Sompo said: “Sompo is honoured to have been mandated by our long-term partner Turkish Airlines to launch the SAAFI product on its inaugural financing of two Airbus aircraft. Sompo has extensive experience in the Aviation Non-Payment Insurance market having been involved in the financing of more than 120 aircraft globally over the past eight years. We believe our partnership with AXIS through SAAFI will be a welcome addition to our current suite of aviation financing product available to our customers, with Turkish Airlines the first of many who will benefit from our additional capacity.”

Richard Jelf, Senior Underwriter at AXIS said: “AXIS is proud to be bringing the SAAFI product to the aircraft finance market alongside Sompo and thrilled to have Turkish Airlines as our first customer. Building on our extensive experience in the aviation sector, SAAFI is an important addition to our product offerings in the Aircraft Non-Payment Insurance space. Through this initiative, AXIS can partner with new and existing customers, playing an important role in both their growth as well as that of the airline industry.”

Stuart Ashworth, Managing Director of Financial Solutions, Willis, a WTW business, added: "We are delighted to be able to assist Turkish Airlines and SMBC with this financing. This is also our first SAAFI mandate from Turkish Airlines; an innovative financing solution supporting an innovative, dynamic and forward-thinking airline."