Kuwait Airways and ALAFCO Formalize Sale and Leaseback Deal For 4 B777-300ER Aircraft
Kuwait City, June 11, 2017
Kuwait Airways Company (KAC) and ALAFCO Aviation Lease and Finance Company (ALAFCO) have signed an initial agreement for the sale and leaseback of four Boeing B777-300ER aircraft for a lease term of twelve years.
Chairman of KAC, Mr. Sami F. Al Rushaid, stated that “A Request for Proposal (RFP) was issued to seven qualified companies and consortiums around the world, and Kuwait-based ALAFCO Aviation Lease and Finance Company presented the best offer to KAC. This agreement is beneficial to both companies, and will make available funds that KAC will utilize to take delivery of the remaining three of four new B777-300ER aircraft from the Boeing Company. Kuwait Airways will take delivery of one aircraft per month from June to August 2017. Entering into this sale and leaseback arrangement will enable KAC to diversify its sources of funding and strike a balance between financing and leasing of the Boeing B777-300ER fleet”.
Vice Chairman and CEO of ALAFCO, Mr. Ahmad A. Alzabin, stated that “To be able to support the fleet modernization plan of the national carrier of Kuwait is an important milestone for ALAFCO. This deal marks the beginning of a strategic cooperation between Kuwait Airways and ALAFCO.” Mr. Alzabin added, “The B777-300ER aircraft will be financed mostly by Kuwaiti banks, and will have a positive impact on the local economy of Kuwait.” “
KAC is Kuwait’s state-owned national flag carrier and was established in 1953. It is a full-service airline operating scheduled international services throughout the Middle East, to Asia-Pacific, Europe and North America. KAC currently serves 43 destinations with a fleet of 28 aircraft comprising of 18 widebody aircraft and 10 narrow body aircraft.
ALAFCO Aviation Lease and Finance Company K.S.C.P., headquartered in Kuwait, is a global aircraft leasing firm, and is listed on the Kuwait Stock Exchange. ALAFCO's main activities include aircraft operating leases, sale and leaseback operations and aircraft lease management services. ALAFCO’s current portfolio consists of 61 Airbus and Boeing aircraft – comprising of A320, B737 and B777 aircraft – leased to 20 airlines in 13 countries across the world. ALAFCO invests in new technology aircraft and currently has a firm order of 115 aircraft comprising of 73 A320neo, 10 A321neo, 12 A350-900XWB and 20 B737max aircraft.