Jazeera plans narrowbody RFP next year

Source: Flightglobal.com
This story is sourced from Flightglobal.com

Jazeera Airways plans to send a request for proposals to aircraft manufacturers in 2014 as the Kuwaiti budget carrier looks to build its fleet.

"Jazeera Airways is working right now at what will be our long-term fleet. We have received 13 A320s and have two more deliveries in October 2013 and May 2014," says Marwan Boodai, Jazeera Airways Group's chairman in a conference call.

"Our target is that by the end of the first half of 2014, we will have determined our long-term plan that will cover 2015 to 2019. We will mainly focus on narrowbody aircraft and expect to go out in the market by the fourth quarter of 2014."

Boodai says the aircraft could either be purchased or leased. "Those are still options open for Jazeera".

The group turned in a KD7.5 million ($26 million) net profit for the first half of the year, including a KD3.9 million surplus for the second quarter.

Chief financial officer Donald Hubbard says Jazeera's cash position has more than doubled during the past year. At 30 June, the group had KD47 million of cash against KD105 million total loans.

During the first half Jazeera secured a KD20 million loan to repay a KD15 million deferred purchase consideration, says Hubbard.

The group also paid $15 million in pre-delivery payment loans and secured $90 million in commercial debt to fund its last three A320 deliveries.