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KAC and ALAFCO formalize sale,leaseback deal for four aircrafts

KUWAIT: 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 aircrafts for a lease term of twelve years.

Sami F Al-Rushaid, Chairman of KAC, 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.” Ahmad A Alzabin, Vice Chairman and CEO of ALAFCO, 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.” Alzabin added, “The B777-300ER aircrafts will be financed mostly by Kuwaiti banks, and will have a positive impact on the local economy of Kuwait.”

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