|02 July, 2019

Kuwait's Jazeera Airways, Alafco sign $253mln leasing contract

It is estimated that the contract will have a positive impact on Jazeera Airway’s operations and revenues

Image used for illustrative purpose. Cabin attendants from Japan Airlines (JAL) pose for the media in front of an Airbus A350 XWB aircraft after it landed for its market survey at Haneda airport in Tokyo November 19, 2014.

Image used for illustrative purpose. Cabin attendants from Japan Airlines (JAL) pose for the media in front of an Airbus A350 XWB aircraft after it landed for its market survey at Haneda airport in Tokyo November 19, 2014.

REUTERS/Toru Hanai
Kuwait - Jazeera Airways announced it has signed a contract to lease three planes from ALAFCO Aviation Lease and Finance Co after winning a tender offered by the Kuwaiti low-cost carrier.

The three aircraft are Airbus models; the first one (A320-200) will be delivered in July 2019, while the other two (A320Neo) will be delivered in November 2019 and September 2020, Jazeera Airways said in a bourse filing on Tuesday.

The financial impact of the contract cannot be determined currently; however, it is estimated that the contract will have a positive impact on Jazeera Airway’s operations and revenues.

Alafco noted in a separate statement to Boursa Kuwait that the two planes of (A320Neo) are new, while the (A320-200) plane is from the firm’s portfolio.

Alafco reported that the total value of the deal is amounting to $252.6 million (KWD 76.6 million), as the two new planes are valued at $221 million (KWD 67 million), while the other one is for $31.6 million (KWD 9.6 million).

Alafco further added that the positive impact of the deal will be registered in the financial statements starting from the fourth quarter of the fiscal year ending 30 September 2019, and will last for more than 12 years from delivering the first plane in the contract.

Alafco cannot disclose the financial impact of the deal to avoid its effect on the firm’s competitiveness in the market

Source: Mubasher

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