Airways has been forced to cancel its agreement to acquire 19 aircraft from lessor Aviation Lease and Finance
Company (ALAFCO) after failing to secure Government approval for the deal.
airline had signed a letter of intent earlier this year to take the aircraft –
comprising 12 Boeing 787s and seven Airbus A320s – and had recently pressed for
rapid Government endorsement of the acquisition.
in a statement to the Kuwaiti stock exchange today ALAFCO says that it has
received a letter from Kuwait Airways saying that the carrier had not obtained
this necessary approval.
says that, as a result, the agreement is “null and void” and states that it is
cancelling the letter of intent.
Kuwaiti-based lessor ordered
six General Electric GEnx-powered
Boeing 787-8s last year, and another six this year. It placed a follow-on order
in July for another ten of the type.
the Paris Air Show this year ALAFCO also ordered seven Airbus A320s when it
firmed its commitment for 12 Airbus A350 XWB twin-jets.
has not indicated whether the Kuwait Airways decision will affect its orders.
Airways could not immediately be reached for comment. The flag-carrier, which
has identified a need for 36 aircraft by 2019, had been in discussions earlier
this month with the country’s regulators to firm financing arrangements and
terms for the fleet renewal.