Simply put, we only do what we are good at and we do it well. ALAFCO’s competencies meet the requirements of carefully chosen competitive grounds and should those requirements fall beyond our boundary of possibility we are quite content to join forces with the finest in the trade to offer our customers the best of all worlds. The three principle activities of our company are:
 
  Operating Leasing
 
Typically, we as lessors acquire certain equipment at our own risk and transfer it to the lessee as the lease object for certain payment over certain period of time and on certain terms into temporary possession and for purposes of utilization.The period of time over which the lease object is transferred to lessee is minimum three years.

Operating leases are attractive to many lessee airlines as a way to manage obsolescence risk, because the lessor retains ownership of the equipment and the asset risk associated with it.

Today, 40-50% of the world fleet is on operating lease, with an additional 15-20% in a finance lease structure. Furthermore, 40% of all future deliveries are to lessors.
 
  Sale and Leasebacks
 
This is one of the types of leasing products where the seller (airline) of the lease equipment concurrently acts as the lessee. Although these type transactions are structured as operating leases, the prospective lessee’s purpose and implicit benefit is often to raise capital by refinancing owned assets.

Since refinancing risks differ from those incurred in leasing additional equipment needed for growth, it is an industry and an ALAFCO norm that a prospective customer has to have a valid, productive reason for a sale and leaseback.
 
  Aircraft and Aircraft Lease Management

Air Transportation is a fast growing industry, however it is highly capital intensive, highly sensitive to business cycles and increasingly competitive. Against this mixed background, no individual or corporate investor can be considered exempt from the industry’s uncertainties. This is why ALAFCO offers a range of advisory services to other parties in relation to aircraft acquisition, aircraft marketing and remarketing for sale or lease, along with aircraft and lease management, hence guarding the values of customers’ assets and ensuring a good return on their investments.

ALAFCO currently manages four A320-200s for Kuwait Finance House, and is Co-Manager along with Novus Aviation Ltd. of a growing portfolio of aircraft for MALC Aviation Ltd.