The 2008 Financial Crisis has demonstrated that unlike conventional banks, Islamic banks, which endorse Shari’ah (Islamic law) principles, were not affected. Moreover, the aviation sector has witnessed, in the recent years, the fast growth of Middle East airline companies, such as Emirates, Qatar Airways and flydubai. This fulgurant growth raises the question of whether the flexibilities and particularities of Islamic finance offers can provide a good alternative and enable airlines to grow. Indeed, Islamic finance requires banking institutions not only to look after their own interest but also the best interests of their clients. Islamic banks might be more willing to help financing aircraft knowing that if the airline’s positive growth increases, the value of the sukuk (Islamic bonds) might increase which will be profitable for the bank. The interest in Islamic finance as an alternative to conventional aviation financing is gaining traction and could prove to be an alternative catalyst for aviation growth.
|Journal||Annals of Air and Space Law|
|Issue number||Part I: Leading Articles: Section A: Air Law|
|Publication status||Published - 2019|