THE SIXTH LARGEST TRANSACTION OF THE YEAR
ALAFCO buys 10 Boeing 787 aircraft for US$ 2.1 billions for delivery in 2015
Alzabin: A significant addition to the plans of building up a fleet of multi models and capabilities fulfilling our clients’ needs.
ALAFCO Aviation Lease and Finance Company concluded an agreement for purchasing 10 Boeing 787 aircraft for a value of US$ 2.1 billions for delivery starting in 2015. This is the sixth largest transaction made by the Company since the beginning of the current year with major world aircraft manufacturers. It is intended for consolidating its high competitive ability of providing various types of aircraft to its clients and emphasizing its concept of setting up a company of good and strong return for its shareholders and compatible with its medium and long term activities and plans.
The Chairman and CEO, Mr. Ahmad Abdullah Alzabin said that this transaction consolidates ALAFCO efforts for building up a fleet of the state-of-art and best types of aircraft to promote its expansion plans of building up larger clientele base throughout the world and fulfill the needs of airlines of different types of aircraft in accordance with the constant studies of ALAFCO to determine the needs of markets and major airlines in view of the remarkable growth and large expansions of air carriage and the increasing reliance of world airlines on leasing as one of the best solutions for increasing revenues and reducing expenses. He pointed out that this transaction increases the number of aircraft on firm order by ALAFCO to 59 aircraft since the beginning of the year.
Alzabin explained that the aircraft confirmed to be purchased are amongst the most modern Boeing aircraft and characterized with the advanced technical standard and high operational capacity together with low cost and are the subject of high demand in the world markets, which is expected to rise over the next few years. The acquisition of these aircraft is thus a good investment opportunity as well as a decision in line with ALAFCO permanent interest to cope up with the expectations of its airlines clientele and to remain always ready to meet their needs. He added that ALAFCO currently has 12 Boeing aircraft of different models operating within its fleet on lease to companies form Asia, Europe and Middle East. The Company also contracted for firm orders for 22 Boeing aircraft in this year only.
He added that, “ALAFCO considers these new aircraft as good investment and specific privilege providing a differential option in comparison with its competitors and strong support with its clients. It is a tangible future addition to the quality of aircraft comprising ALAFCO fleet. The efforts for setting up revenue yielding assets base are of increasing value. This is the concept we are working to establish for a long time whereby ALAFCO would be really the right future investment for its shareholders. In fact, the Company is an appropriate and good option for the investors on the medium and long term.
Alzabin said that the international aspect dominates the regional aspect of ALAFCO business due to the type of its business, which is characterized with close relations with the world market in terms of products or clients. It has assisted it in building up a worldwide client base. It focuses on the markets which the studies indicate their increasing reliance on aircraft leasing such as Europe, South East Asia countries and Indian peninsula. Currently, the Company looks to the Middle East region to make use of the regional market developments. It has business cooperation with major airlines such as Turkish Airlines, Royal Jordanian Airlines and Yemen Airlines. He pointed out that the diversification of the Company’s activities such as leasing, marketing and operation management as the case with MALC Aviation Leasing Fund owned by Kuwait Finance House comprising 15 aircraft will consolidate ALAFCO opportunities in the region as well as other markets such as USA and some new Europe countries “East Europe”.