Air Arabia , a publicly-listed carrier in the United Arab Emirates (UAE), signed a $350 million loan to finance its purchase of 10 new Airbus A320 aircraft, the airline said in a statement on Tuesday.

The Sharjah-based airline said Qatar National Bank and Abu Dhabi-based Commercial Bank International arranged the loan, without providing terms of the loan facility.

Air Arabia, which posted a 20%  rise in first-quarter net profit, said the purchase of 10 new Airbus planes are part of a larger order for 44 A320 planes it placed with the planemaker in 2007.

Adel Ali, Chief Executive at Air Arabia , told Zawya Dow Jones earlier this month that the carrier is in talks with both Boeing Co. and Airbus to place a new bulk order for aircraft as the low-cost carrier reviews its five-year strategy. He didn't disclose the number of planes the airline was considering, but said it was in talks on the Airbus A320neo and the Boeing 737 MAX.

Air Arabia , which has hubs in Sharjah, Alexandria and Casablanca, said net income amounted to 59 million U.A.E. Dirhams ($16 million) in the three months ending March 31, up from AED 49 million in the year ago quarter.

Air Arabia shares closed trading Monday down 1.8% at AED 1.12.

 

Source: Reuters; Zawya Dow Jones