Investec Aviation Finance has restructured and upsized its senior revolving credit agreement with South Africa’s Federal Airlines, as the charter carrier prepares to expand its luxury safari travel offerings.
Federal Airlines plans to use the facility to refinance the acquisition of a pre-owned Embraer ERJ 145, a Cessna 208B Grand Caravan aircraft, and a spare engine, Investec said.
The facility, which was first opened in 2023, will also secure delivery financing for two additional new Cessna Caravan 208B aircraft that are scheduled for arrival in 2026.
Established in 2004, Federal Airlines offers premium point-to-point shuttle services and customisable charter flights for business and leisure travellers on safari and vacation in South Africa.
It offers travel to luxury safari destinations in the Kruger National Park, Sabi Sands Private Game Reserve, Timbavati Private Nature Reserve, Thornybush Game Reserve, Madikwe Game Reserve, Londolozi Game Reserve, and Marakele National Park.
Federal Airlines’ fleet expansion comes at a time when South Africa is experiencing a boom in tourism, particularly a resurgence in overseas travellers with greater purchasing power and an interest in luxury safari.
According to data from Statistics South Africa, arrivals of overseas travellers to the country in September climbed by 27.6% year on year.
The largest share of overseas visitors came from the US (18.7%), followed by the UK (14%).