Kuwaiti group Aref to purchase five A320s from ALAFCO

This story is sourced from Pro
See more Pro news »

Kuwaiti finance company Aref Investment Group is to acquire five Airbus A320s from the Gulf state’s Aviation Lease and Finance Company (ALAFCO).

Aref has established a subsidiary, Aref Logistics, which plans to use the aircraft to transport passengers for Saudi Arabian pilgrimage and arrange charter flights for the Bangladeshi labour market.

ALAFCO has disclosed the transaction today in a statement to the Kuwaiti stock exchange.

It values the deal at $325 million but says it is “difficult to calculate the expected profit” from the agreement.

ALAFCO says the twin-jets will be transferred in 2009. It says Aref is the second Kuwaiti company, after Kuwait National Airlines, to enter a contract with the lessor.

“Demand for aircraft on lease is increasing all over the world,” it adds. “We have the ability to meet the narrowbody and widebody aircraft requirements of major airlines with attractive delivery positions.”