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Tue 13 Dec 2011 09:04 AM

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Kuwait's Alafco posts surge in net profit

Aviation leasing firm sees near quintupling in net profit; inks lease deal with VietJet

Kuwait's Alafco posts surge in net profit
Alafco placed a $4.6bn order for 50 Airbus A320neo

Kuwait's Aviation Lease & Finance Co (Alafco) posted a near quintupling in net profit to KD47m ($169.68m) for the full year ended Sept 30, the company said in a statement on Monday.

Alafco said that its board has approved a cash dividend of 10 fils per share for the fiscal year.

The Kuwait-based firm posted a full-year net profit of KD10.8m in 2010.

Alafco has a customer base of 16 airlines globally. Its lease portfolio increased to 48 aircraft during the year as it took delivery of eight new aircraft last year, the company said.

The company placed a $4.6bn expanded order for 50 Airbus A320neo passenger jets at the Dubai Air Show last month.

It obtained financing facilities worth $313.3m during the year from local and international banks, Alafco said, without naming the lenders.

The firm also announced that it has leased three of its Airbus A320 aircraft to Vietnam's low-cost carrier VietJet Air.

Alafco will lease the planes to the Vietnamese private airline for 8 years, it said in a statement on the Kuwait Stock Exchange, and the operation will start within three months from the date of delivery.

The planes were released from the services of Kuwait Airways, and the market value of each aircraft is above $40m, it said.

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