Nixed Deal For 19 Planes Over Parliamentary Debate Delays

As ANN reported, Kuwait Airways Corp.'s order for 19 new aircraft from Aviation Lease and Finance Co. (ALAFCO) was cancelled last week. The $3 billion dollar deal, for seven Airbus A320s and 12 Boeing 787 Dreamliners, failed to meet proper government approval.

ALAFCO is now downplaying the deal, according to a report published Sunday by Agence France Presse.

"We have received requests from 18 local and foreign companies to lease our planes following the cancellation of the deal," said ALAFCO chairman Ahmad al-Zabin according to the official KUNA news agency.

A Memorandum of Understanding was signed in June and was intended to upgrade KAC's aging fleet.

The cancellation reportedly happened because of a delay for a debate about opening KAC up as a public company and selling stock to the public. This debate by the Kuwait government and parliament has been postponed until the next parliamentary term opens October 30 according to AFP.

KAC has repeatedly come under fire from members of parliament with accusations of mismanaging public monies and has seen more than $2 billion in losses in the past 17 years.

FMI: www.alafco-kw.com, www.kuwait-airways.com