4-Apr-2011 12:22 PM

ALAFCO requests Wataniya pay USD70m for remaining lease

ALAFCO Aviation Lease & Finance Co stated it has requested Wataniya Airways to pay around USD70 million for the remaining period of the carrier's aircraft leasing agreement (Bloomberg/The National, 03-Apr-2011).  "ALAFCO had signed a deal to lease three aircraft to Wataniya Airways from 2009 to 2017. Wataniya Airways ceasing its operations is regarded as a breach to the deal," ALAFCO said. It is willing to negotiate with Wataniya Airways for a “fair” compensation for the damage it incurred due to Wataniya halting its operations. The carrier announced on 16-Mar-2011 that it would cease operations, citing finances and regional unrest.