Flying-Tiger
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Airbus To Set Up Islamic Financing Organization

Sun Jun 24, 2007 6:57 pm

Seems that Airbus is laying the foundation for further deals in the Middle East / Islamic World (i.e. Northern Africa, Indonesia or Pakistan):

Quote:
Kuwait's Islamic firm Investment Dar is in advanced talks with European plane maker Airbus to set up a joint venture to finance aircraft purchases, a newspaper said on Saturday.



Quote:
Investment Dar would own 30 %, while Airbus would get 20 % of the new firm, the paper said.

The details of the deal would be announced next month, it said. The joint venture's business would be financing aircraft deals for governments or airlines compliant with Islamic law.

http://www.arabianbusiness.com/index...nt&view=article&id=495034&Itemid=1

Having this type of setup available might indeed be of great help in future sales campaigns.
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kc135topboom
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RE: Airbus To Set Up Islamic Financing Organization

Sun Jun 24, 2007 10:06 pm

Is Airbus going to have a similar deal with the Vatican?

This really does not make any good business sense. What is the difference between an "Islamic law complient" airplane, and any other airplane Airbus builds?
 
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breiz
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RE: Airbus To Set Up Islamic Financing Organization

Sun Jun 24, 2007 10:10 pm

Quoting KC135TopBoom (Reply 1):
This really does not make any good business sense. What is the difference between an "Islamic law complient" airplane, and any other airplane Airbus builds?

It does make a difference. More about it here:
http://en.wikipedia.org/wiki/Islamic_banking

[Edited 2007-06-24 15:13:48]
 
Poitin
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RE: Airbus To Set Up Islamic Financing Organization

Sun Jun 24, 2007 10:11 pm

Quoting KC135TopBoom (Reply 1):
Is Airbus going to have a similar deal with the Vatican?

This really does not make any good business sense. What is the difference between an "Islamic law complient" airplane, and any other airplane Airbus builds?

Under Islamic law, you can not charge interest for money loaned. Boeing should do the same thing.
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AirNZ
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RE: Airbus To Set Up Islamic Financing Organization

Sun Jun 24, 2007 10:21 pm

Quoting KC135TopBoom (Reply 1):
Is Airbus going to have a similar deal with the Vatican?

Sorry, what exactly was your point here?
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Poitin
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RE: Airbus To Set Up Islamic Financing Organizatio

Sun Jun 24, 2007 10:26 pm

Quoting Breiz (Reply 2):
This really does not make any good business sense. What is the difference between an "Islamic law complient" airplane, and any other airplane Airbus builds?

It does make a difference. More about it here:
http://en.wikipedia.org/wiki/Islamic...nking

 checkmark  An excellent explanation!
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breiz
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RE: Airbus To Set Up Islamic Financing Organization

Sun Jun 24, 2007 10:37 pm

Quoting KC135TopBoom (Reply 1):
Is Airbus going to have a similar deal with the Vatican?

Historically and theologically speaking, Airbus should.
Similarly to the Islamic religion, and before it, the Catholic church originally forbid true believers to practice usury. That is why the main bankers of the time were Jewish people and later Protestants.
http://en.wikipedia.org/wiki/Usury
 
Devilfish
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RE: Airbus To Set Up Islamic Financing Organization

Sun Jun 24, 2007 11:29 pm

Quoting KC135TopBoom (Reply 1):
Is Airbus going to have a similar deal with the Vatican?

I doubt the Vatican would want another Banco Ambrosiano.  Wink

Quoting Poitin (Reply 3):
Under Islamic law, you can not charge interest for money loaned. Boeing should do the same thing.

Hasn't it been (of late) refined to mean "usurious" (i.e., excessive) rates of interest?
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zeke
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RE: Airbus To Set Up Islamic Financing Organization

Sun Jun 24, 2007 11:33 pm

Quoting Poitin (Reply 3):

Under Islamic law, you can not charge interest for money loaned. Boeing should do the same thing.

They already do, AFAIK EK & PK to name a few have their 777s partially funded through Islamic funding with the US government export import bank (EXIM) underwriting the guarantee.
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ikramerica
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RE: Airbus To Set Up Islamic Financing Organization

Mon Jun 25, 2007 12:31 am

Quoting DEVILFISH (Reply 7):
Hasn't it been (of late) refined to mean "usurious" (i.e., excessive) rates of interest?

No, from how I understand it, you don't charge interest, but you either provide less money than the contracted payback amount or you charge a fee for providing "free" money, among other structures. It's a trick to get around the idea that nobody is supposed to profit from lending money.
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