The Kuwait Airways and ALAFCO Aviation Lease and Finance Company KSCP on Sunday signed an initial agreement for the selling and re-leasing of four Boeing 777-300ER.

ALAFCO has presented the best of seven world offers for the 12-year deal, Kuwait Airways, chairman Samie Al-Rasheed said in a press release.

He added that the agreement would be for the good of both companies, as it will help the Kuwait Airways obtain the financing necessary for the remaining three Boeing 777-300ER jetliners to be received from Boeing, June to August.

In addition, the deal is part of diversifying financing sources for the Kuwait Airways, realizing a balance between purchase and leasing of new jets, in line with the directives of the general assembly.

On his part, ALAFCO’s Vice Chairman and CEO Ahmad Alzabin expressed pleasure for supporting the plan for modernize the Kuwait Airways’ fleet, saying that the deal would be the start of strategic cooperation between the two sides.

He expected the deal to be mostly financed by the Kuwaiti airways, saying it would leave a positive effect on the national economy. Kuwait Airways, the national carrier, is one of the oldest in the Gulf region.

It was founded in 1953 as a private company under “Kuwait National Airways Ltd,” and was totally acquired by the Kuwaiti Government in 1962.

ALAFCO, headquartered in Kuwait, was founded in 2000 and listed on the Kuwait Stock Exchange (now Boursa Kuwait) in 2006. Its main activities are aircraft operating leases, sale and leaseback of aircraft and aircraft lease management.

Source: NAM News Network