United Arab Emirates (UAE) airline Etihad Airways said it will partner with Citi in an initiative to help support the region’s small businesses by strengthening cash flow to Etihad suppliers.
The airline will work with the bank to establish a cash flow management solution that lets Etihad pay some of its suppliers earlier than the typical 30- to 60-day window it normally takes to settle an invoice.
In a customisable supply chain finance programme that the companies say meets the specific needs of the airline industry,
and Citi will aim to increase and accelerate payment to suppliers via Citi.
“Our suppliers are an essential part of the success of our business,” Etihad chief financial officer James Rigney said, “We are happy to provide the tools that offer new credit and liquidity sources and accelerate their access to cash flow.”
Citi said that the supply chain finance solution is its first in the Europe, Middle East and Africa (EMEA) region’s airline industry. Rigney said that he hopes the programme will encourage economic growth in the UAE. “This project is a great example of how we can work together with Citi to improve access to finance for our suppliers and encourage their development in the region to build a sustainable and vibrant city.”
However the companies did not disclose the financial terms of their new partnership and have not yet named the suppliers that would benefit from the faster payments initiative.
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