Tourism Kuwait aircraft firm Alafco explores sale over losses By Reuters May 23, 2022 Creative Commons/Md Shaifuzzaman Ayon Alafco leases Airbus and Boeing aircraft to airlines including Air India, Malaysia Airlines and Kuwait Airways Kuwait state-funded aircraft leasing firm Alafco is exploring a sale and has held talks with private equity firms and other aircraft lessors, sources said. Alafco, whose shareholders include the Kuwaiti government, has a fleet of 77 wide- and narrow-body Airbus and Boeing aircraft operated by airlines and another 68 on order. Alafco and major shareholder Kuwait Finance House did not respond to emailed requests for comment. The potential sale comes as the lessor reported a 79 percent increase in half-year losses to 4.5 million dinar ($14.71 million), which it blamed on impairment charges. Over the same period, Alafco’s leasing revenue fell 2 percent to 51 million dinar ($166.75 million). The potential sale comes as aircraft lessors around the world are confronted with inflation, higher borrowing costs and the impact of Russia’s invasion of Ukraine. Alafco’s customers include Air India, Indonesia’s Garuda, Malaysia Airlines, Kuwait Airways and Italy’s new carrier ITA. Its average remaining lease term is 8.5 years, according to Alafco’s latest earnings presentation which predicts more consolidation among lessors without saying if it would do so.
