Monday, May 23, 2022

Kuwait state-backed aircraft lessor Alafco explores sale

Dubai: Kuwait-headquartered aircraft leasing firm Alafco is exploring a sale and has held talks with private equity firms and other aircraft lessors, sources familiar with the talks said.

Alafco, whose shareholders include the Kuwaiti government, has a fleet of 77 wide- and narrow-body Airbus (AIR.PA) and Boeing (BA.N) aircraft operated by airlines and another 68 on order.

Alafco and major shareholder Kuwait Finance House did not respond to emailed requests for comment.

The potential sale comes as the lessor reported a 79% increase in half-year losses to 4.5 million dinar ($14.71 million), which it blamed on impairment charges.

Over the same period, Alafco's leasing revenue fell 2% to 51 million dinar ($166.75 million).

The potential sale comes as aircraft lessors around the world are confronted with inflation, higher borrowing costs and the impact of Russia's invasion of Ukraine.

Alafco's customers include Air India, Indonesia's Garuda, Malaysia Airlines, Kuwait Airways and Italy's new carrier ITA.

23/05/22 Reuters

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