ITA Airways Secures $240 Million Financing for Fleet Expansion

ITA Airways, the Italian airline, has announced a significant financial milestone with its wholly-owned subsidiary securing $240 million in private credit financing from AIP Capital. This substantial loan, secured against three new Airbus A330-900N aircraft equipped with Rolls-Royce Trent 7000 engines, marks a pivotal moment in ITA Airways’ growth strategy, reported ch-aviation.com.

On August 29, Antonino Turicchi, Chairman of ITA Airways, highlighted the financing deal as a key component of the airline’s ongoing expansion efforts. Turicchi emphasized that this development underscores the airline’s enhanced credibility with financial institutions and investors, attributed to its strong performance in 2023 and the first half of 2024.

Turicchi remarked, “This agreement is a significant milestone in the expansion of ITA Airways’ new-generation fleet. It aligns with our strategy of balancing equity with debt capital contributions. This transaction not only advances our growth strategy but also reflects our increased credibility in the financial sector.”

Michael Kittle, Managing Director and Head of Private Credit at AIP Capital, described the financing arrangement as a customized solution designed to support ITA Airways’ fleet modernization. AIP Capital, known for its expertise in alternative investments within the aviation industry, operates from offices in Stamford (UK), Dublin, and Singapore.

Since its operational launch in October 2021, ITA Airways has made notable strides in fleet renewal. Currently, 58% of its fleet consists of new-generation aircraft, contributing to a 25% reduction in both fuel consumption and CO2 emissions. This fleet upgrade is a testament to ITA Airways’ commitment to sustainability and efficiency.

The airline’s all-Airbus fleet comprises 104 aircraft, including eleven A330-900Ns, with six additional units on order. Its A320-200N fleet includes nineteen aircraft, with thirteen more set for delivery. Additionally, ITA Airways operates six A321-200NX(LR)s, with three more planned, and six A350-900s, with two more on order. The rest of the fleet features seven A220-100s (with five more on order), nine A220-300s (with seven more to come), thirteen A319-100s, twenty-six A320-200s, and seven A330-200s.

This latest financing deal is poised to further bolster ITA Airways’ position in the competitive aviation market, supporting its ongoing efforts to modernize its fleet and enhance operational efficiency.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com, AIP Capital