Kuwait's ALAFCO acquires nine-aircraft portfolio in GE deal

Deal comprises both Airbus and Boeing aircraft already on long-term lease to well-established airlines in Asia
By Staff writer
Sat 13 Aug 2016 09:57 AM

Kuwait-based Aviation Lease and Finance Company, better known as ALAFCO, has announced that it has completed the acquisition of a nine-aircraft portfolio from GE Capital Aviation Services (GECAS).

The portfolio comprises both Airbus and Boeing aircraft already on long-term lease to well-established airlines in Asia - with three of the airlines joining ALAFCO as new customers.

ALAFCO said in a statement that it is keen on serving the needs of its new customers Lion Air, Juneyao Airlines and Citilink, as well as expanding its existing relationship with Nok Air.

Lion Air is Indonesia's largest privately-run airline and one of the largest low-cost carriers in the Southeast Asia region, while Juneyao Airlines is part of a major privately owned Chinese group.

Thai Airways International - Thailand's flag carrier - owns the largest stake in Nok Air, while Citilink is the low-cost subsidiary of the national carrier of Indonesia (Garuda Indonesia).

The acquisition is in line with ALAFCO's growth strategy, which includes the acquisition of aircraft with lease attached from other lessors, as well as sale and lease-back transactions with airlines, the statement said.

Additionally, ALAFCO has contracted with Boeing and Airbus to acquire 117 new technology aircraft to be delivered between 2017 and 2021. ALAFCO aims to have a fleet of more than 100 aircraft by the end of the decade.

Last month, Kuwait-based ALAFCO announced the upsizing of an order from Airbus of 10 A320neos to A321neos.

The contract was signed at Farnborough International Airshow and is part of an overall agreement signed in 2012 for 85 A320neos, the company said in a statement. 

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