KUWAIT: Aviation Lease and Finance Company (Alafco) announced the purchase of five new 737-800 Boeing planes worth of $250 million and leasing the same to Turkish Airlines for 12 years.
Three planes have already been delivered to the Turkish Airlines and the remaining two planes will be delivered next month. This is in tune with Alafco's open policy in a new market characterised with solvency and growth. The compnay looks forward to be an axis of future expansion of its business in new countries and with other major airlines.
Ahmed Abdullah Alzabin, the chairman and managing director, announced in a press release that Alafco considers Turkish Airlines as one of its major clients and looks forward to the promising Turkish market in light of the forthcoming membership of Turkey with the European Union and the growing economic cooperation between Turkey and Kuwait as a form of deep-rooted historic relations between them and the positive economic developments of the Turkish economy in all fields. He expressed his pleasure to announce the transaction on the occasion of the visit of Ali Babacan, the Turkish Minister of Treasury to Kuwait which is intended to consolidate the cooperation ties and increase trade and investment exchange between the two countries, and strengthen bilateral relations. This is an area in which private sector companies and firms in both countries should play major role.
Alzabin added that Alafco has been awarded this transaction by Turkish Airlines, reflecting Alafco's strong competitiveness. In addition, planes are leased in accordance with the concept of sale and lease back. This concept has developed its clients and has great demand among major airlines which consider it practical mechanism for the provision of further options that fulfil their fleet requirements. Royal Jordanian Airlines has leased two planes from Alafco using same concept delivery of which will be completed by next November.
Alzabin pointed out that upon the completion of this transaction the fleet of Alafco will increase to 20 planes leased to 8 major world airlines in Asia, Europe and Middle East. Alafco now has nine Boeing 737-800 planes. This is an outstanding development of the assets diversification policy that means reduction of risks and achievement of the best operation returns. He said that Alafco co-manages the fleet of MALC Aviation Lease Fund consisting of 15 planes in favour of Kuwait Finance House that owns about 88% of the Company.