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"ALAFCO considers this year as the year of growth at all levels and activities."
At its meeting held yesterday, ALAFCO's General Assembly approved increasing the company's capital to KD 62.3 m, and forming the board of directors, which met later to name the chairman and deputy chairman, thus the board of directors becomes as follows:
1. Ahmad Abdulla Al-Zabin Chairman.
2. Nafel Mohammad Al-Hathal Deputy Chairman.
3. Adel Ahmad Al-Banwan. Member
4. Barrak Abdul Mohsen Al-Sabeeh. Member
5. Mohammad Al-ghariba. Member
6. Faisal Al-Daie. Member
"ALAFCO considers this year as the year of growth at all levels and activities." Stated Ahmad Abdulla Al-Zabin, Chairman and CEO, "In addition to the achievements realized on the level of financial indicators, ALAFCO has embarked on a pivotal stage of its business activity, being listed in Kuwait Stock Exchange (KSE) as the first company in the area of Sharia-compatible funding aircraft purchase and leasing." He added.
"In 2005/2006 ALAFCO purchased 9 aircraft, thus increasing its fleet to 20 aircraft, before selling 2 aircraft, under its plan to upgrade its fleet to stabilize the aircraft average life at 3 years. The sale of both aircraft brought a profit of KD 2 m to the company" He elaborated.
ALAFCO had announced the sale of another two A310/300 aircraft with a sale of USD 2.6 m. brining the total sale to 4 aircraft. A memorandum of understanding with Yemenia Airlines has been signed for the sale of the fifth and final aircraft.
ALAFCO had announced a net profit for the financial year ended 30 September 2006 of KD 8.2 m, an increase of about four-fold compared to last year. Operating profit of the company registered KD 9.5 m, an increase of about 57% compared to last year. Assets rose to KD 243 m, an increase of 130% against the previous year. Profit per share amounted to 15.46 Fils, an increase of about three-fold the profit per share for the previous year. The company decided to distribute bonus shares by 8% to shareholders, and the shareholders equity increased from KD 38.2 m, to KD 72.7 m.
"Over the period to come, the company will further diversify the activities and services it provides to its customers, in an endeavor to expand regionally and internationally. The step includes conducting marketing studies, operational management of Aircraft Leasing funds." He said. "An example is MALC Aircraft Leasing Fund, where ALAFCO manages 15 aircraft Leased to 8 major airlines, in addition to exploring investment opportunities in areas closely related to the company's business, all in light of the studies and growth indicators in the aviation market." He explained.
Al-Zabin commended the support and understanding ALAFCO receives from the major stakeholders, including Kuwait Finance house, and Kuwait Airways Corporation, for its business and the future of its performance, via the successive increases in the capital to enhance the company's expansion and growth plans, competitiveness, or through the expansion of the shareholders base in order to maximize market benefit from the company's success, thus confirming confidence in ALAFCO.
Al-Zabin expressed ALAFCO's readiness to cooperate and provide the global, regional and local airlines with their needs of Leased aircraft and other services it provides. "The company is currently studying the market trends, tracing the positive developments in the aviation market at the local level, in light of the recent positive GCC government resolutions, by establishing economy airlines in the Gulf, or globally via growth in the aviation market. The company has options to deal positively with, and maximize benefit of, such developments." He commented.
Lately, ALAFCO has delivered a new Airbus A320-200 to the Royal Jordanian Airlines "ALIA", in implementation of Phase 2 of the Lease agreement signed by both parties last year.
"The USD 50 m aircraft is the second Aircraft to be delivered to Royal Jordanian under the agreement, as it had received an aircraft of the same type at the beginning of this year, with a 7 year Lease period for each aircraft" He added.
"Delivery of the aircraft was made in a timely manner, which reflects ALAFCO's commitment towards its customers, and highlights its considerable position in the aircraft Leasing market, as well as its distinctive relations with aircraft manufacturers." He stated.
"Upon delivery of the aircraft ALAFCO's fleet will be 19 aircraft of the two major types, i.e. Boeing and Airbus." He concluded.
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Distribution of 8% bonus shares and assets increased to K.D. 243 millions
Alzabin: ALAFCO's net profit is K.D. 8.2 millions
The Chairman and CEO of ALAFCO Aviation Lease and Finance Company, Mr. Ahmad Abdullah Alzabin said that the Company has realized net profit in the fiscal year ended on 30/09/2006 amounting K.D. 8.2 millions, at an increase of about four times the profits of the last year. The Company's operational profit amounts K.D. 9.5 millions, at an increase rate of 57 per cent over the last year's. The assets increased to K.D. 243 millions at an increase of 130 percent than the last years.
Alzabin added in a press release after the Board of Directors meeting yesterday that share profit has reached Fils 15.46 at an increase of about three times the share profit in the last year. The Board decided to allocate bonus shares at the rate of 8% to the shareholders. The shareholders equity has increased from K.D 38.2 millions to K.D. 72.7 millions.
Alzabin considers these outstanding indications where the net profit equals 15 percent of the paid up capital as a promising sign and an evidence of the policy of gradual creation of a solid base of accumulative quantitative and qualitative achievements applied by the Company over the last few years. The most salient features thereof include diversification of assets, limitation of risks, expansion of clients base and provision of optimal conditions and causes for realization of growing and stable profitability rates.
Alzabin said that ALAFCO considers the fiscal year 2005/2006 as the year of strong growth on different levels and activities of the Company. In addition to the actual achievements on the level of former financial indications, ALAFCO has entered into an axial stage of its march, namely its listing in Kuwait Stock Exchange as the first company of its type in this filed and as the sole company in the field of aviation leasing and finance, operating according to the provisions of Islamic Share'a. He pointed out that the first day of the Company listing in the Stock Exchange shows the extent of trust in the future of its business in light of the high demand on its shares by the dealers.
He added that ALAFCO bought 9 planes during the fiscal year 2005/2006, increasing the number of its fleet to 20 planes before selling 2 planes as per its plans to renew its fleet. This includes the sale of other three planes which is currently under negotiation. Thus, the average age of planes shall be three years. The Company's profit from the sale of the two planes and a spare engine amounts K.D. 2.5 millions.
He declared that ALAFCO is now negotiating the purchase of further modern planes to be announced in due time.
Alzabin said that ALAFCO over the next period shall seek further diversification of its activities and services rendered to its clients in an attempt for more regional and international expansion. This includes the provision of marketing studies, more interest in the management of third parties fleets and investment funds as ALAFCO does in connection with MALC Aviation Leasing Fund where it manages 15 planes chartered to 8 major world airlines. This is in addition to the exploration of investment opportunities in such fields closely related to the Company's business in light of studies and growth indications of aviation market.
Alzabin paid tribute to the great support and understanding of ALAFCO's business and future performance particularly from its major shareholders, i.e. Kuwait Finance House and Kuwait Airways Corporation, through successive increases of its capital for supporting the Company's plans of expansion, growth and competitiveness or through the expansion of shareholders base to maximize the market benefit from the Company's success. This is a factor that affirms trust and confidence in ALAFCO.
Alzabin expressed ALAFCO's willingness to cooperate with and fulfill the requirements of international, regional and local airlines for leased planes and other services. He pointed out that the Company is studying the market conditions and tracking the positive developments in the aviation market on the local level in light of the latest positive government orders or through the incorporation of economic airlines in Kuwait and Gulf or internationally through the large growth of aviation traffic and the future increase of its volume. ALAFCO has the potential and required experience to positively deal with and benefit from these developments.
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ALAFCO PLACES ANOTHER BIG ORDER WITH AIRBUS
ALAFCO, the Kuwait-based international aircraft leasing company, has confirmed a new order for six Airbus A320s, on top of the12 Airbus A350s with options on a further six that were booked last year.
The new contract is worth $300 million and will be delivered in full during 2009, starting from January.
Alafco, which has been listed recently on Kuwait Stock Exchange, has a diversified portfolio of 33 commercial aircraft owned and managed that includes the A320, A340/A330 and A300/A310 families. Its main shareholder is Kuwait Finance House.
“Alafco believes that there will be a strong demand for the A320 family aircraft during the coming years and is positioning itself to meet such demand from regional and international carriers", says Alafco Chairman and CEO Ahmad Alzabin. “The new planes will carry the Airbus hallmarks of cabin comfort and economy into a new decade, and are unquestionably the right aircraft for our customers and their passengers.”
“Sustained growth in Middle East traffic plus a commitment to the long-term makes ALAFCO well placed to profit from increasing demand for new Airbus planes,” says Habib Fekih, Airbus Middle East president. “The technologies and techniques embodied in the A320 give operators the optimum benefits in flexibility and cost-effectiveness.”
The A320 has the widest single aisle fuselage on the market, and was designed to optimise revenue through cabin flexibility and passenger comfort.
All members of the A320 family share the same type-rating. This allows pilots to fly all of them and a single team of mechanics to maintain the fleet, thus reducing maintenance and training costs and helping make the A320 cheaper to operate than the competition.
Uniquely, the A320 family offers a containerised cargo system which is compatible with the world wide standard wide-body system.
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Increasing its fleet to 20 planes,
ALAFCO buys five new Boeing planes worth US$ 250 million and leases them to Turkish Airlines for 12 years.
Alzabin: We look forward to benefit from the economic developments in Turkey and its openness to the European Market.
ALAFCO Aviation Lease and Finance Company announced its purchase of 5 new 737-800 Boeing planes worth of US$ 250 millions and leasing the same to Turkish Airlines for 12 years. 3 planes have been delivered to the lessee and the remaining two planes will be delivered during next month. This is a step of ALAFCO openness to a new market characterized with solvency and growth, which it looks forward to be an axis of future expansion of its business in new countries and with other client major airlines.
Mr. 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 this transaction at the occasion of the visit of His Excellency Mr. 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 as practical mechanism for the provision of further options that fulfill their fleet requirements. Royal Jordanian Airlines has leased two planes from ALAFCO using same concept, which delivery 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 9 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 favor of Kuwait Finance House that owns about 88% of the Company.
Regarding the listing of ALAFCO in Kuwait Stock Exchange, Alzabin said that work is going on through the respective company undertaking the listing, the listing shall be announced in due course. This will mark an important stage in the progress of ALAFCO.
The general assembly of ALAFCO has lately approved the increase of its capital to KD. 57.75 millions. This is compatible with the Company's plans to increase its fleet to 50 planes over the next few years, concurrently with the transaction of buying 18 Airbus planes of A350-800 model for a total amount of US$ 2.9 billions, including 12 planes firm and purchase option of 6 planes of the same type. The delivery thereof shall start in the third quarter of 2012.
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Purchased at US Dollars 190 million
ALAFCO leases two Boeing 777-200ER aircraft to China Southern Airlines for seven years
Alzabin: Our interest in the Asian markets is strategic and the diversification of our fleet fulfills the demand on our services
ALAFCO Aviation Lease and Finance Company announced that it purchased two Boeing B777-200ER aircraft whose engines are manufactured by General Electric Company at the amount of US Dollars 190 million and leased them to China Southern Airlines for seven years.
The Chairman & CEO of the company, Ahmad Abdullah Alzabin stated in a press release that this is the third Chinese company that leases aircraft from ALAFCO after China Eastern Airlines and China Eastern Wuhan Airlines in a manner that consolidates the company’s orientation toward the Asian markets and the particular interest thereof in the Chinese and Indian markets where the aircraft operating lease industry enjoys a high performance rate and this type of aircraft witnesses an increasing demand, pointing out that ALAFCO leased two other Boeing aircraft of the same type to Malaysian Airlines and Air India.
8 international companies leased aircraft from ALAFCO including 5 companies in South East Asia and the Indian subcontinent, two airlines in the Middle East namely Yemen Airlines and Royal Jordanian Airlines, in addition to one European company.
Alzabin added that ALAFCO purchased the two aircraft from ILFC, the giant American leasing company in a second deal concluded with this company as the first deal involved an aircraft engine of CFM56 type. China Southern Airlines is listed on the Stock Exchange in New York and Hong Kong with a fleet of 230 aircraft operating to various points in China and the world.
ALAFCO manages, in addition to its own fleet, the lease of 15 passenger aircraft in favor of MALC Fund owned by Kuwait Finance House.
Alzabin stated that, upon the purchase and lease of these two aircraft, the fleet of aircraft owned and leased by ALAFCO will reach 15 comprising of 8 Boeing and 7 Airbus. This is also deemed an important addition to the efforts exerted to diversify the assets of aircraft through the main manufacturers of aircraft in the world namely Boeing and Airbus.
“ALAFCO” achieved profits for 2005 that reached Kuwaiti Dinars 3.5 million with a 14% increase in comparison with the previous year, knowing that the company’s activity is focused on leasing aircraft, offering technical and marketing consultations, managing the ownership of aircraft, reselling and other services relating to the aircraft lease industry.
Alzabin stated that the Boeing B777 is of the wide body type capable of making long trips, it has a 300 seats capacity and is deemed one of the latest technology aircraft produced by the Boeing Company.
ALAFCO expanded and widened the size of its deals upon the signature of the agreement of purchase of 18 Airbus A350-800 aircraft at 2.9 billion Dollars with Airbus, knowing that this agreement was finally signed during the last Dubai Airshow and that it comprised 12 aircraft firm and 6 option whose delivery will start in the third quarter of 2012.
ALAFCO receives the first new Airbus A320-200 and leases it to Royal Jordanian Airlines
Alzaben: Distinguished development in marketing our aircraft and diversifying the markets
ALAFCO Aviation Lease & Finance Company announced that it received a new Airbus A320-200 and leased it to Royal Jordanian Airlines “Alia” as the first phase of an agreement signed by the two companies last year deemed to be a step to implement its new marketing strategy to provide lessees for the new aircraft and deliver them thereto directly from the Factory.
Ahmad Abdullah Alzaben, Chairman & Chief Executive Officer of ALAFCO, stated in a press release that ALAFCO purchased the aircraft from Airbus at USD 50 million and leased it to Royal Jordanian Airlines for seven years by virtue of an agreement that was signed in the middle of last year to lease Royal Jordanian Airlines two aircraft of this type during 2006 and the aircraft was delivered on time and the airline will receive a second aircraft of the same type next November.
Alzaben assured that ALAFCO made a distinguished step and a radical move in its methods and marketing plans as the agreement concluded with Royal Jordanian Airline was the first agreement of its kind that enabled the company to provide a lessee for the new aircraft directly purchased by ALAFCO from Airbus.
Alzaben added that this cooperation constitutes a new consolidation of ALAFCO’s plans toward the diversification of its business markets and the attraction of new customers from well-known aviation companies, particularly in the Middle East region; it also constituted a qualitative addition to the company’s aircraft made of the two main types, namely Boeing and Airbus and thus, Royal Jordanian Airlines becomes the second Middle East Airline Company after Yemen Airlines in the list of companies that comprises five other international companies that lease ALAFCO fleet whose number of aircraft will reach, upon the operation of the new aircraft, 15 aircraft, assuring ALAFCO’s endeavor to satisfy its customers and provide their needs in a way that contributes to realize their plans relating to the development of their fleet and their future expansions, knowing that it welcomes, at the same time, any dealing and cooperation with all the aviation companies in the various aspects of “ALAFCO’s” activity represented in the lease of aircraft, offering technical and marketing consultations, managing aircraft for others, sale & lease back since all the previous activities and services are appropriate for several aviation companies, particularly those with expansion and fleet upgrade plans.
Al-Zaben indicated that the aircraft leased to Royal Jordanian Airlines is of the medium size but it enjoys a very high level of technicality and uses IAE engines of well-known international reputation and competence, adding that it is equipped with the best equipments and services produced by Airbus to provide comfort, enjoyment and safety to the passengers.
For Five Years
Alzabin : ALAFCO leases Air India a Boeing B777
Kuwait, 28 January 2006 : The Chairman and CEO of ALAFCO, Aviation Lease And Finance Company, Ahmad Abdullah Alzabin stated that the company leased Air India a Boeing B777-200 by virtue of a five-year contract lately signed by the two parties to increase the dealing volume between them to five leased aircraft of both Boeing and Airbus main types.
Alzabin pointed out, in a press release, that the aircraft was purchased by ALAFCO from the American market at the amount of US Dollars 75 million and it is deemed an important qualitative addition to the company’s fleet of 12 aircraft; it is also the second aircraft of this important type it owns while the Malaysian Airlines leases the other aircraft.
He announced that ALAFCO is in the process of purchasing more aircraft in the coming period within the efforts exerted thereby to diversify the assets, consolidate the fleet and fulfill the increasing demand of certain aviation companies thanks to the high performance rates achieved by the aircraft and the economic operational costs, knowing that these aircraft are deemed of large size and long flight period with a capacity of 300 passengers.
He added: ALAFCO progresses in a studied manner to achieve an important addition to the size of its fleet and consolidate the confidence of its customers including large aviation companies by fulfilling the requirements of development and expansion in their activities through the plans thereof to establish a fleet of 50 commercial aircraft during the few coming years and consolidate its presence in one of the most important market in the field of the aviation industry currently represented in Asia and particularly in the Indian subcontinent, China and the Pacific Ocean, indicating that ALAFCO leases aircraft to four large companies in three Asian countries, namely the Malaysian Airlines, Air India and two companies in China in a manner that reflects its interest in the market developments and its endeavors to play a leading role therein by acquiring a large share.
ALAFCO has previously announced the purchase of 18 Airbus A350 at the total amount of US Dollars 2.9 billion in a deal that comprised 12 aircraft of confirmed order and the choice of purchase of 6 other aircraft of the same type whose delivery will start in the third quarter of 2012.
Alzabin renewed ALAFCO’s willingness to cooperate with all the aviation companies in the various aspects of its activity represented in leasing aircraft and offering technical and marketing consultations, in addition to the sale, lease back or otherwise, indicating that all the previous activities and services are very appropriate to several aviation companies, particularly those that have expansion and fleet update plans.
The company achieved profits in 2005 that reached 3.5 million Dinars with 14% increase in comparison with the previous year, the net assets increased up to 38.4 million Dinars at the rate of 6% from the previous year, the company’s assets increased up to 105.6 million Dinars and the shareholders’ equity by 2.24 million Dinars at an increase of around 6% from the previous year.
ITS ASSETS AMOUNT TO KD 105.6 MILLION
ALAFCO’s PROFITS RISE TO KD 3.5 MILLION IN 2005
Al-Zabin: We have signed a conclusive contract to buy 18 Airbus planes for US$ 2.9 billion at the Dubai Airshow
The chairman and managing director of Alafco Aviation Lease and Finance Company, Ahmed Abdullah Al-Zabin has said that the company achieved a profit of KD 3.5 million in 2005, with a 14% increase over the previous year. The operating profits amounted to KD 6 million, which is 23% above the previous year, while net assets rose to KD 38.4 million, 6% above the previous year, and total revenues reached to KD 14 million, increased by KD 2.5 million, 21.5% above the previous year’s figure.
In a press statement issued on the occasion of announcing the financial results of ALAFCO for the financial year ended 30 September 2005, Al-Zabin added that the company’s assets amounted to KD 105.6 million, and equity registered an increase of KD 2.24 million, which is 6% above the previous year”. He explained that “the achieved profits are in line with the plans drawn by the company’s management and overall developments in the aircraft leasing market.”
He added that these figures point to several achievements made by the company in the early part of a new phase of its development, during which it overcame several issues that were related to the incorporation phase. He said that the company “concluded many deals and initiated several quality projects in parallel with the three successive capital increases to KD 50 million”. He also said that the company has activated its plans and strategy in order to achieve a continuous increase of its market share, which is considered the real launching of the company’s operations which was established in the year 2000, and now has a fleet of 11 planes of difference sizes and types, leased to several global airlines. “The company succeeded in building a diversified aircraft portfolio which has promoted its presence in the aviation markets” , he added.
Al-Zabin announced that, during his presence at the Dubai Airshow, he signed a conclusive contract with Airbus to buy 12 advanced technology A350 aircraft, to be delivered by the year 2012, with the option to buy 6 more planes of the same type at a subsequent date. He added that the two companies had previously signed the initial agreement to buy these planes at Paris Airshow in France , last June.
He went on to say that this deal, estimated at US $ 2.9 billion, is a major step within the company’s strategy, and represents a major shift in its competitive position among global aircraft leasing companies.
He added that, on the operations front, ALAFCO has renewed the lease of two A310-300 planes to Air India, and concluded a sale and re-lease contract for two new A320-200 planes to the Royal Jordanian Airlines, in addition to the asset management of Kuwait Finance House’s MALC Fund for Aircraft Leasing,
Al-Zabin said he was confident that ALAFCO would, in the coming phase, successfully implement its ambitious expansion and growth plans, based on a solid foundation and strong resources, in full harmony with the shareholders’ aspirations and the company’s ambitions, given the foreseen boom and growth in the air transport market until the end of the present decade. He said that the company is seeking to offer new services associated with the commercial aviation industry, such as the leasing of freighter aircraft, which is one of the world’s largest markets at the present time.
He emphasized that, in concluding leasing contracts with major airlines that enjoy an excellent reputation and possess proven operating records, ALAFCO operates with a view to achieve rewarding profits for its shareholders and occupy a prominent position worldwide, having already established strong relations with manufacturers, airlines and other aircraft leasing companies. Today, he said, ALAFCO offers a wide range of consulting, marketing and technical services related to the air transport industry.
Year-End 30 September 2004
Operating and Financial Results
Kuwait / 29 November 2004 – Alafco
Aviation Lease and Finance Co., the Kuwait-based
shareholding closed company providing commercial
aircraft leasing products consistent with Islamic
Sharia, announced its year-end 30 September 2004
results.
The
company's total revenues rose by 98% to KD11.5
million (US$39 million), compared with the
previous year, while net profits rose to KD3.0
million (US$10 million). With now over KD109
million in asset values (US$369 million), 12 owned
and 13 managed aircraft, and more than 15 airline
customers, the company is well on target to secure
its place among the more accomplished commercial
aircraft lessors in the world, right through and
despite what many consider, the severest down
cycle in the industry's history.
The
excellent financial results for the year are the
outcome of a prudent business strategy connected
with a small but dedicated management team, a
supportive customer base, and the coming together
of exceptional shareholder, board, and financier
collaboration. Alafco's shareholders, have once
more shown their confidence in the company's
effectiveness, and decided not to distribute
dividends for the second year running, and to
withhold the company's retained earnings in the
form of bonus share issue equivalent to KD3.0
million (US$10 million), therefore bringing the
share capital to KD33.0 million (US$112
million).
In
a press conference marking the occasion, Alafco's
Chairman and CEO Ahmad A. Alzabin described the
company's positioning for the future to join the
yet higher-tier lessors grouping, not just through
fleet expansion, which will grow to about 18-owned
aircraft next year, but through keen focus on
value. He made clear that even with the critical
mass of operations proving so crucial in
commercial aircraft leasing, focus on creating
value to shareholders, adding value to customers
and proving value to financiers, will remain the
company's long term priority.
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