Kuwait leasing firm Alafco boosts capital to expand

Kuwait's Aviation Lease and Finance Company (Alafco) is increasing its capital by 24 per cent to $214.5 million to finance new expansion, its chairman said yesterday.Ahmad al-Zabin said the decision was taken as part of the company's mid-term plan to increase its fleet to 50 planes after three years and to 80 aircraft by 2015.Alafco last month signed a deal to buy six Airbus A320 aircraft at a cost of $300 million, with delivery starting in 2009. It currently owns 18 aircraft of different types and also manages 15 others. During the Dubai air show last year, Alafco ordered 12 Airbus A350-800 aircraft valued at around two billion dollars, with an option for six more.The company, which was listed on the Kuwait bourse in October, has announced its fleet will rise by 10 aircraft in 2007. Jointly owned by Kuwait Finance House (KFH), the state's leading Islamic bank, and the state-owned Kuwait Airways Corp (KAC), the company has long-term lease contracts with nine international companies including Indian, Chinese and Yemeni airlines.The company, which leases and manages aircraft in line with Islamic principles which forbid usury, saw net profits rise 135 per cent to $28.4 million at the end of the last fiscal year on September 30. Its assets also were up 130 per cent from $365 million to $841 million on September 30. - AFP