Loading

ALAFCO and Wataniya negotiating outstanding lease deal

Analysis

Kuwait's Aviation Lease & Finance Co (ALAFCO) is reportedly close to scaling back its financial demands on the defunct Wataniya Airways, owned by Kuwait National Airlines Co. The carrier terminated operations in Mar-2011, but in Apr-2011 ALAFCO demanded USD70 million from the airline for their remaining A320 leasing deal.

Summary
  • Kuwait's Aviation Lease & Finance Co (ALAFCO) is in negotiations to scale back its financial demands on Wataniya Airways, which ceased operations in 2011.
  • ALAFCO had initially demanded USD70 million from Wataniya Airways for their remaining A320 leasing deal.
  • Negotiations between ALAFCO and Wataniya Airways are expected to be completed within 10 days.
  • Wataniya shareholders will decide on a capital raising to revive the carrier, subject to an agreement with ALAFCO.
  • Air Lease Corporation (ALC) has announced lease agreements for 20 aircraft with carriers in Europe, Asia, and Africa.
  • ALC has leased aircraft to Alitalia, SriLankan Airlines, S7 Airlines, Kenya Airways, and Spring Airlines.

ALAFCO and Wataniya are in the final phase of negotiations for the leasing company to scale back its demands. Negotiations are expected to be completed within 10 days. Wataniya shareholders will decide on a capital raising to put the carrier back into operation, conditional on an agreement with ALAFCO.

Air Lease Corporation announced details of another 20 aircraft lease placements to carriers in Europe, Asia and Africa.

  • Alitalia: ALC is leasing 10 new aircraft to Alitalia, consisting of five E175s and five E190LRs under 12-year leases;
  • SriLankan Airlines: ALC and SriLankan have entered into lease agreements for three new A320-200s, one delivered in May-2011 and the remaining two for Oct-2011 and Nov-2011 on 12-year leases;
  • S7 Airlines: Leasing three new A320-200s for eight years, for delivery in Jan-2012, Feb-2012 and May-2012;
  • Kenya Airways: eight-year leases for three new E190ARs scheduled for delivery in Aug-2011, Sep-2011 and May-2012;
  • Spring Airlines: ALC acquired one A320-200 on lease to Spring.

Selected Lessors daily share price movements (% change): 3-Jun-2011

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More