DUBAI, Dec 12, (Agencies): Kuwait’s Aviation Lease & Finance Co (Alafco) posted a near quintupling in net profit to 47 million dinars ($169.68 million) for the full year ended Sept 30, the company said in a statement on Monday. Alafco said that its board has approved a cash dividend of 10 fils per share for the fiscal year. The Kuwait-based firm posted a full-year net profit of 10.8 million dinars in 2010. Alafco has a customer base of 16 airlines globally. Its lease portfolio increased to 48 aircraft during the year as it took delivery of eight new aircraft last year, the company said.

Expanded
The company placed a $4.6 billion expanded order for 50 Airbus A320neo passenger jets at the Dubai Air Show last month. It obtained financing facilities worth $313.3 million during the year from local and international banks, Alafco said, without naming the lenders. The firm also announced that it has leased three of its Airbus A320 aircraft to Vietnam’s low-cost carrier VietJet Air. Alafco will lease the planes to the Vietnamese private airline for 8 years, it said in a statement on the Kuwait Stock Exchange, and the operation will start within three months from the date of delivery. The planes were released from the services of Kuwait Airways , and the market value of each aircraft is above $40 million, it said.

Record
‘Alafco has had another year of record breaking performance. The company earned a net profit of KD 47 million for the fiscal year ended 30 September 2011 which translates into earnings per share of Fils 60. Total assets increased 8% over the last fiscal year to KD 581 million. The shareholders’ equity rose 39% as compared to the previous year to KD 142.5 million. The company’s General Assembly have approved the Board of Directors’ recommendation to distribute cash dividend of Fils 10 per share to all registered shareholders as at the date of the General Assembly,’ said Ahmad A. Alzabin, Chairman and CEO.
The unprecedented financial results during the 2010/2011 fiscal year were as a result of the growth in leasing activity in regional and international markets and also due to the amendment of some aircraft purchase agreements with manufacturers.
Alafco has a customer base of 16 airlines globally, and the lease portfolio increased from 40 aircraft to 48 aircraft during the year. The company took delivery of 8 new aircraft last year, Alzabin added.
The following are Alafco’s achievements, by transaction, during the fiscal year ended 30 September 2011.

1. Aircraft deliveries:
Eight new aircraft were delivered to various airlines as follows:
n 2 Airbus A320-200 aircraft to Saudi Arabian Airlines
n 3 Boeing B737-800 aircraft to Ethiopian Airlines
n 2 Boeing B737-800 aircraft to Okay Airways in China
n 1 Boeing B737-800 aircraft to Caribbean Airlines in Trinidad and Tobago

2. New aircraft orders:
During the year, Alafco placed orders with Airbus for the following aircraft:
a. Six new Airbus A350-900 XWB aircraft valued at US $1.6 billion at list prices; and
b. Fifty new Airbus A320neo aircraft valued at US $4.5 billion also at list prices.

3. Amendment of aircraft purchase agreement with manufacturers:
Some contracts with manufacturers were amended resulting in a profit of KD 37 million.

4. Financing facilities:
Alafco obtained financing facilities during the year in the amount of US $313.3 million from local and international banks.
In the first quarter of the 2011/2012 fiscal year, Alafco amended another aircraft purchase agreement resulting in an estimated profit of KD 13 million that shall be reflected in the financial results for the quarter ended 31 December 2011.
Also during first quarter of the 2011/2012 fiscal year, Alafco concluded agreements for (1) the lease of 6 Airbus A350-900XWB aircraft with Thai Airways for a period of 12 years and (2) lease of 3 A320-200 aircraft to Vietnam based Vietjet Air. The aircraft leased to Vietjet Air are scheduled to enter service during the coming three months.