RwandAir Signs USD$160 Mln Aircraft Loan Deal

RwandAir has signed a deal with a regional African bank for a USD$160 million loan as part of the financing to buy two Airbus aircraft.

The loan will be arranged by the Eastern and Southern African Trade and Development (PTA) Bank and will be partly used to buy an Airbus A330-200 and a A330-300 to be delivered by 2016 as part of an expansion plan announced by the airline in April.

"We'll have to upgrade our Dubai route with a much bigger aircraft that has capability to carry more passengers, baggage and cargo. That is a route that's already suffering as we talk," RwandAir chief executive John Mirenge said at a signing ceremony in Kigali.

RwandAir signed a memorandum of understanding in March for the Airbus planes, worth about USD$500 million based on list prices.

Mirenge said the airline would also receive its second Bombardier Q400 NextGen aircraft later on Thursday.

RwandAir flies from Kigali to most capitals of east and central Africa, as well as to Lagos in Nigeria, Accra in Ghana and Johannesburg in South Africa. Its sole destination outside the continent is Dubai.