Saudi Arabian Airlines and Kuwait based Alafco Aviation Lease and Finance Company announced their agreement for the sale and lease of 17 Boeing and Airbus aircraft to Saudi Arabian Airlines to be delivered during the period from 2009 until 2015.

The Chairman & Chief Executive Officer of Alafco Aviation Lease and Finance Company Mr. Ahmad Abdullah Alzabin stated that the agreement includes the sale of 8 Boeing Dreamliner B787-9 aircraft with the total value of US$ 1.6 billion, at list prices, to be delivered between 2014 and 2015.

The agreement also states that Saudi Arabian Airlines shall lease 4 Boeing B787-9 aircraft for a period of 12 years (to be delivered in 2012) and 5 Airbus A320-200 aircraft that shall be delivered in 2009, for a period of 8 years. The value of the leased aircraft is US$ 1.125 billion at list prices.

Mr. Alzabin added “Alafco is proud of cooperating with a great and deeply rooted company like Saudi Arabian Airlines. I would like to thank our Saudi brothers for their sincere efforts during the negotiations of the deal which focused on the mutual interest of the two parties and established a strong relationship which we hope to continue and expand in the future.”

On his part, the Director General of Saudi Arabian Airlines Mr. Khalid Abdullah Al-Molhem considered the deal as an important step toward upgrading the fleet of the company, expressing his happiness for the mutual cooperation and fruitful efforts exerted by Alafco Aviation Lease and Finance Company. He also referred to the efforts for upgrading the fleet of Saudi Arabian Airlines pursuant to the stated time table which shall enable the organization to privatize the main aviation sector and make full use of the increasing demand on the local and international flights.

Mr. Alzabin said “he announced this transaction with Saudi Arabian Airlines with pleasure as this deal marks another step towards achieving its goal of leasing aircraft to major airlines in the Arabian Gulf.” Earlier, ALAFCO also signed aircraft lease agreements with Kuwait national carrier Wataniya Airways and Oman Air.

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