02 July 2017
Financing partnership between official national airline and ALAFCO heralded as a "collaboration for the nation's future"

Kuwait City, Kuwait - Kuwait Airways, the official national airline of the State of Kuwait, welcomed the eighth of the 10 Boeing 777-300ER aircraft it has on order to Kuwait International Airport, on 1st July.

The eighth aircraft has been named “Auhah” after the small island situated 41km east of the Kuwaiti mainland.

Following the recent partnership with ALAFCO, the Kuwait-based aircraft leasing company, the last four aircraft will now be financed as part of a “sale-lease-back” agreement, each on 12-year leases.

According to Kuwait Airways’ Chairman, Sami Fahad Al-Rushaid, the leasing arrangement underlines a strategic decision to ensure the short and long-term financial stability of the airline.

“The Kuwait Airways – ALAFCO collaboration will have wide-ranging influence on the stable growth and development of Kuwait Airways. This partnership is not just a key milestone for the airline, but it is also one that promotes the future success of the nation as a whole.”

“Since becoming chairman, in April, it has been a key priority to ensure the long-term financial stability of the airline. After conducting a review and doing our due diligence on the airline’s aircraft acquisition strategy, the board of directors and I concluded that 12-year leases for the four remaining aircraft presents the best way to apportion the airline’s exposure to risk and bring the airline back into profitability sooner,” added Al-Rushaid.

On board the latest edition to Kuwait Airways’ fleet, included KAC’s technical team of engineers that’s comprised of Kuwaiti nationals.

The Boeing 777-300ER (“ER” for Extended Range) is the second largest passenger aircraft in the skies today and boasts one of the longest ranges of any commercial passenger aircraft, at around 7,370 nautical miles (13,650 km). Kuwait Airways’ bespoke interior design offers a three-class cabin configuration: Royal, Business, and Economy. The latter is inclusive of a 54-seat Premium Economy section.

The 777-300ER aircraft are the first to be painted in the airline’s dynamic new livery, as revealed at the Boeing Factory, in Everett, Washington State, in October last year.

-Ends-

About Kuwait Airways
Kuwait Airways (KU: IATA, KAC: ICAO) is the official national carrier of the State of Kuwait.

Established in 1953 as a private company, the airline was initially 50 per cent owned by the Kuwaiti government. In 1962, the government assumed 100 per cent ownership, making it the longest serving, official state carrier operating from the Arabian Gulf Region.

In 2016, Kuwait Airways announced a five-year transformation strategy with a mandate of reasserting the official national carrier of Kuwait’s proud legacy and status within the regional aviation market, while also reclaiming the position as the “preferred airline linking Kuwait to the world”.

A member of the Arab Air Carriers Organisation and employing over 4,800 people, Kuwait Airways’ head office is in the heart of Kuwait City, close to Kuwait International Airport (KWI). The airline currently provides regular scheduled services to 36 international destinations in the Far East, Middle East, Europe and North America.

In 2017, the airline is expected to cross the milestone of serving over three million passengers, per year.

Kuwait Airways’ fleet of 27 aircraft currently consists of 8 x B777-300ER, 7 x A320-200CEO (completed delivery Q2 2015), 5 x A330s (completed delivery Q4 2015), 4 x A340-300, 2 x Boeing 777-200, and 1 x Boeing 747-400.

On 9th December 2016, Kuwait Airways received the first of 10 Boeing 777-300ER and on 1st January 2017 received the second aircraft. The expected delivery of the 10th and final aircraft, from this order, is in Q3 2017. Further additions to the fleet will include 15 A320neo and 10 A350 (arriving from 2019). Once the delivery of these new aircraft are concluded, Kuwait Airways will boast the youngest commercial airline fleet in the world.

© Press Release 2017