Press statement on the general assembly meeting of ALAFCO Aviation Leasing and Finance Company. Dated 17/12/2008 - Kuwait Chamber of Commerce and Industry
Mr. Ahmad Alzabin – Chairman and CEO
It is my pleasure to welcome the press, whom we view as partners to our success, at the threshold of a new year for ALAFCO Aviation Lease and Finance Company. ALAFCO was incorporated as a Kuwaiti shareholding closed company on 31st March 2000. This is the 8th general assembly held at the end of its fiscal year starting from 1/10/2007 to 30/9/2008.
First of all, I thank all our shareholders, in particular the major shareholders Kuwait Finance House–Baitak–and Kuwait Airways Corporation for their complete trust and support and for their sincere efforts in leading the company in the right direction.
Further, I am proud of the good relation and cooperation between ALAFCO and its airline clients. I reconfirm ALAFCO’s readiness to cooperate with and meet the fleet requirements of global and regional airlines with leased aircraft and services. The last year was positive and outstanding for ALAFCO, the Company managed to conclude transactions for leasing, selling and buying 37 aircraft amounting to US$ 4 billion at list prices. This includes the lease of 20 aircraft of which 13 Airbus A320-200 and 4 Boeing B787-9 are leased to Saudi Arabian Airlines and 3 Airbus A320-200 aircraft are leased to Kuwait National Airways. 13 aircraft were sold including 8 Boeing B787-9 Dream-liner aircraft to Saudi Arabian Airlines and 5 Airbus A320-200 aircraft to Aref Investment Group. Also last year, 4 new Airbus A320-200 aircraft were purchased from Airbus and are scheduled for delivery during the period 2009-2010.
Next year will witness the delivery of 20 earlier ordered aircraft. Overall, ALAFCO entered into purchase contracts for 70 new aircraft amounting to US$ 10 billion at list prices scheduled for delivery starting from 2009. These orders were placed after a comprehensive study of the global demand for aircraft. Most of the new aircraft have already been leased to some airlines such as Kuwait National Airways, Saudi Arabian Airlines, Oman Air, Go Air (India) Private Limited and Sky Airlines of Turkey.
On the financial side, ALAFCO achieved a net profit of K.D. 10.06 million in the fiscal year ended September 2008, that was 10 percent more than the previous year. The profit per share amounted to Fils 15.35; that represents an increase of 10 percent over the same period last year. The assets increased to K.D. 260.9 million increasing 6 percent as compared to the last fiscal year. The shareholders equity increased at 3 percent over the previous year. The board of directors has recommended the distribution of bonus shares at the rate of 5 percent and cash dividends of 5 percent to the shareholders. These outstanding profits are reflective of ALAFCO’s well-balanced growth.
The Company has successfully managed to implement its strategy of promoting its regional presence through the execution of aircraft lease agreements with some major Gulf airlines, the latest of which is the lease and sale agreement for 25 Boeing and Airbus aircraft to Saudi Arabian Airlines. ALAFCO is seeking to increase its presence at the aircraft manufacturing facilities and has established its representative offices in Toulouse, France where Airbus Corporation is domiciled and at Seattle, Washington in the USA where Boeing Corporation is domiciled to closely follow up with the two most prominent centers of aircraft manufacturing in the world.
As for the development of the Company's human resources, Mr. Abulqassim Abdul Ghaffar has been promoted to the position of Executive Vice President in appreciation of his efforts and contributions to the Company especially with regard to the development and implementation of the growth strategy. During his 8 years with ALAFCO, he has been involved with many development projects for the company on both regional and global level.
Today, ALAFCO leases aircraft to airlines in Europe, Middle East, South East Asia, China and India. It was the first leasing company in the region to have the right to purchase Boeing B787 dreamliner aircraft. The close relations with Airbus and Boeing also enabled ALAFCO to secure early delivery dates for its ordered aircraft making them more attractive to airlines.
The Company has finalized the following transactions:
The lease of 13 new Airbus A320-200 aircraft to Saudi Arabian Airlines for 96 months with effect from the delivery dates in 2009-2010.
The lease of 4 new Boeing B787 aircraft to Saudi Arabian Airlines for 144 months with effect from the anticipated delivery date in 2012.
The sale of 8 new Boeing B787 aircraft to Saudi Arabian Airlines scheduled for delivery in 2014-2015.
The sale of 5 new Airbus A320-200 aircraft to Aref Investment Group scheduled for delivery in 2009.
The lease of 3 new Airbus A 320 aircraft to Kuwait National Airways for 96 months with effect from the delivery date in 2009.
The purchase of 4 new Airbus A320-200 aircraft to be delivered in 2009-2010.
Management of the assets of MALC aviation lease fund