Beirut (APD) - Saudi Arabia-based Al Suwaiket Trading and Contracting Company and Russia-based Finance Leasing Company (FLC), an aircraft manufacturing and leasing company, signed on Saturday a memorandum of understanding (MoU) to establish a $100 million aircraft company in Bahrain, the Riyadh-based al Iqtisadiya daily reported Monday.
The company will specialize in marketing, leasing, selling and buying of aircraft. Under the contract, FLC will purchase and lease Russian and international airplanes along with the establishment of an aircraft maintenance and training center in the Gulf and North Africa.
Al Suwaiket is also negotiating to acquire 10 civilian Russian Regional Jets (RRJs) from FLC after the latter bought 60 RRJs from Russian manufacturer Sukhoi. Each RRJ costs around $27 million and can carry from 60 to 95 passengers.
Al Suwaiket is expanding its network of business partnerships and alliances since the company and Iran-based Samenol Aemmeh Air Travel Agency announced two weeks ago that they would establish a SR 200 million ($53.3 million) joint venture in Bahrain for religious tourism services and aircraft trading.
FLC focuses on financing and leasing services on aircraft and industrial equipment, leasing services to Russian defense enterprises, and ship-building and leasing of commercial vessels. The company's shareholders include the Russian Federation and the Republic of Tatarstan, along with aircraft and defense companies.
Dhahran-based Al Suwaiket, which was established in 1947, is specialized in general contracting, electro mechanical engineering, telecom and electronics, erection operations and maintenance, heavy equipment rentals, oil and gas drilling and well services, pipeline inspection and cleaning materials and services. [TS]
By Nadim Issa, APD Staff Writer in Beirut
© APD (Arab Press Digest) 2006
