Alafco sells eight Dreamliners to Saudia

FLEET REVAMP: Alafco has agreed to sell eight Dreamliners to Saudia as the carrier looks to upgrade its fleet. (Getty Images)

Kuwait's Aviation Lease and Finance Company (Alafco) agreed to sell eight Boeing 787-9 Dreamliners, with a list price of $1.6 billion, to Saudi Arabian Airlines (Saudia), Alafco said on Wednesday.

Alafco shares jumped 5.6 percent, while the Kuwait stock market was down 0.6 percent at 0837 GMT.

The company said in a statement the aircraft would be delivered between 2014 and 2015.

Alafco also said it would lease out four Boeings for 12 years to the Saudi carrier with delivery expected in 2012.

The list value of one plane is $200 million, while the leasing price is 1 percent of the purchase price paid as a monthly rent, Alafco said in the statement posted on the bourse website.

Alafco said earlier this month it agreed with Saudia to lease five new single-aisle Airbus A320s for next year's delivery, as part of the Saudi carrier's fleet renewal programme.

The Gulf aviation industry is booming as surging economies spurred by record oil prices attract tourists, business people and workers to the world's largest oil-exporting region.

Dubai-based Emirates, the UAE Air Arabia and Qatar Airways have bought billions of dollars worth of aircraft from Airbus and Boeing, looking to bring more people to their respective countries or hub passengers from around the world. (Reuters)

Print | Email | Discuss this article |

READERS' COMMENTS

View all comments (0)

Have your say

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM