Kuwaiti Alafco to invest USD600m in 15 new aircrafts
24 Oct 2014
(MENAFN) Kuwait’s Aviation Lease & Finance Co. (Alafco), a unit of Kuwait Finance House (KFH), announced it is planning to invest USD600 million on buying 15 new aircraft over the next two years to cover its current gap before it receives already-ordered planes in 2017, Arab News reported.
Alafco, which expects to receive 117 new aircraft it previously bought for USD12.5 billion, between 2017 and 2022, said that this deal will bridge the gap by getting aircraft that are leased to airlines, thus having the ability to generate income from day one.
The company, which is owned 53.7 percent by KFH and 11.47 percent by state-run Kuwait Airways Corp, said it will finance a third of the USD600 million from its own resources while the remainder via local and international banks.
Alafco currently operates a 50-aircraft fleet, three of them owned by KFH, the country’s largest Islamic lender and the company said it is planning to double its fleet in coming years.