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Alafco has $62m gain after waiving Airbus accord

Kuwait firm scrapped deal to buy six A350-900s for a third party.
NEWS, Aviation

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Aviation Lease & Finance Company (ALAFCO) said it made a gain of KD17m (US$62m) after waiving an agreement with Airbus SAS to buy six 350-900 aircraft for a third party.

The gain will be included in Aviation Lease’s full-year results, the Kuwaiti company known as Alafco said in a statement to the Kuwait Stock Exchange Sunday.

Alafco last month signed a deal for 30 Airbus A320neo aircraft at the Paris airshow, taking its total order for Airbus single aisle aircraft to 56.

The leasing firm is embroiled in a legal row with troubled luxury carrier Wataniya Airways, after the Kuwait airline ceased operations in March.

The company in April asked KNA, the holding company that owns Wataniya Airways, to pay about $70m to cover the remaining period of an aircraft leasing deal.

Alafco said it had signed a deal to lease three aircraft to Wataniya from 2009 to 2017 and that the airline’s ceasing of operations “is regarded as a breach to the deal.”

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