Aviation Lease & Finance Co said it made a gain of KD17m
($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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