ALAFCO cements rank as one of best 50 aircraft leasing companies
15-Mar-2011 ALAFCO that finances the purchasing and leasing of aircrafts, a Kuwait Finance House (KFH) subsidiary, ranked as one of the best 50 companies worldwide in the field of leasing aircrafts for year 2010 according to a study conducted by Flight Global Data Research, where ALAFCO placed 18th concerning the value of its fleet, and 27th based on the number of aircrafts in the fleet.
Those rankings are a slight improvement than last year after the company managed to increase its fleet by receiving new aircrafts. ALAFCO has also placed 15th among the best 20 aircraft leasing companies regarding the value of its fleets that consist of large and small aircrafts, in addition to jets.
ALAFCO's Chairman and CEO Ahmed Al-Zeben mentioned that the company managed in 10 years to become one of the best 30 companies in the field of aircraft leasing around the world, after implementing a multi-phased strategy that focuses on operational leasing of aircrafts, investing of good assets, setting up alliances, and signing cooperation agreements with Boeing and Airbus. He revealed that the company has located representatives at the main production centers to monitor the market's developments, which allowed the company to seize numerous opportunities and sign important deals worth billions of US dollars to purchase new aircrafts that are now contributing in the company's financial surplus concerning its revenues, in addition to reinforcing its ability to meet the requirements of its airline companies concerning various types of commercial aircrafts. He explained that the company has succeeded in possessing the factors that lead to success, such as owning various kinds of aircrafts, availability of required financing, and good reputation. He added that the company is keen to be financed while taking advantage of competitive rates, which allows it to lease aircrafts. The company's good reputation allowed it to be financed by USD 620 million last year.
Moreover, Al-Zeben revealed that the company aims to own 10 new aircrafts this year as part of its strategic plan that it is following for the coming five years, where the company seeks to have a fleet of 100 aircrafts. He said that last year, the number of aircrafts increased from 32 to 47 aircrafts, after the company received 16 new aircrafts that were leased to several local, regional, and international airline companies. The company sold one aircraft to upgrade its fleet and purchase new aircrafts.
Furthermore, the company's profit increased to KD 21.8 million during Quarter 1 that ended on December 31st with a 878% increase compared to same period last year. KFH owns 54% of the company that manages 12 aircrafts owned by other clients. The company has also managed to market types of aircrafts and to arrange deals for others, in order to cement sources of income. Al-Zeben stressed that the company will continue in its efforts to underscore its status and competitive abilities.
It is worth noting that ALAFCO is the only aircraft leasing company that works according to Shariah, and that Kuwait Airways owns 11% of ALAFCO. The company ahs contracts with 15 airline companies in the gulf, Middle East, Europe, East Asia, China, and the Indian Subcontinent. The value of its assets exceeded USD 1.5 billion.