Jazeera pumps more money into its leasing business
Jazeera Airways, Kuwait's low-cost carrier, on Sunday said it has increased the capital of its fully-owned leasing arm, Sahaab Aircraft Leasing, by 45 percent to KD29m ($102.8m).
In a statement, Jazeera Airways said it was increasing Sahaab’s capital by KD9m ($32m) “to take advantage of new market opportunities."
Sahaab Aircraft Leasing was bought by Jazeera Airways in February this year. The Kuwaiti carrier was the company’s first customer when it began leasing commercial aircraft in October 2008.
“Less than a year since our acquisition we see additional growth opportunities opening up in the leasing market. Jazeera Airways Group committed to increasing Sahaab’s capital through internal resources,” said Jazeera Airways group chairman Marwan Boodai.
Sahaab has six Airbus A320 aircraft leased to Jazeera Airways, four Airbus A320 aircraft on loan to San Francisco-based Virgin America and one Airbus A320 placed with a third undisclosed customer.
Jazeera Airways, which is listed on the Kuwait Stock Exchange, last month reported a nearly six-fold jump in third quarter net profit to KD4.4m ($15.7m). This compared with KD0.76m for the same period a year earlier, marking the airline’s best quarter since its launch in 2005.