Aviation Lease and Finance Co (ALAFCO) reported a threefold year-on-year increase in net profit from KWD2.3 million (USD8.2 million) to KWD21.8 million (USD77.7 million) on the back of additional revenue of KWD20 million (USD71.2 million) in the three months ended 31-Dec-2010, due to one-off contract wins (Trade Arabia, 18-Jan-2011). ALAFCO Chairman Ahmad Alzabin stated the leasing company’s latest results “provide a good sign for continued growth in profits”.
ALAFCO 1QFY2011 profits soar
You may also be interested in the following articles...
Middle East Fleet Report:Middle East is high on growth aircraft orders, mostly widebodies
The Middle East region has the highest ratio of in service to on order aircraft (1.0 to 0.94). For every one aircraft in service in Feb-2017 (1459) there is nearly one on order (1368). The Middle East has the fourth largest regional backlog, much lower than the 4600 aircraft on order in Asia Pacific and lower than the 2200 aircraft on order in each of North America and Europe. Unlike North America and Europe, most new aircraft in the Middle East are for growth, not replacement.
Finnair and TAP Portugal: their location based long haul niche strategies compared
Both Finnair and TAP are based in peripheral corners of Europe: Finnair in the extreme northeast and TAP in the southwest. Both are based in countries with relatively small populations, but they have developed networks that capitalise on their geographic location to carry connecting traffic from across Europe and elsewhere to long haul destinations in other continents.
TAP's main long haul market is Upper South America (primarily Brazil), but it also has a secondary long haul niche in Africa. Finnair's main long haul market is Northeast Asia, with an additional presence in South and Southeast Asia. Both also operate to the US. On short haul, LCC competition has been a bigger threat to TAP than to Finnair, but cost savings are important to both.
TAP and Finnair have similar traffic volumes, unit costs and average trip lengths. Moreover, both have struggled to generate sustainable profitability. This report compares and contrasts Europe's two leading independent exponents of the location based long haul niche strategy. Both are set to accelerate their long haul growth.