A New Order Cancellation
As part of a statement released by the leading lessor from Kuwait, an agreement was reached with the European plane maker.
Thanks to the agreement, a termination of a contract was put in motion. This is for the Airbus A320neo aircraft.
Cirium data highlights that 46 Airbus A320neos were on order from the Kuwait-based lessor.
However, a decision by the company has been labelled as essential. This comes as they work towards reducing their off-balance sheet capital commitments.
Additionally, there’s a focus on reshaping the business to emerge more positively. As a result, certain balances need to be reclassified as part of efforts internally.
Who Are ALAFCO?
ALAFCO is a global aircraft leasing company founded back in 1992.
The company operates out of Kuwait City, where its headquarters are located. Since its conception, it has provided aircraft to significant airlines globally.
Significant customers include Air India, China Southern Airlines, Turkish Airlines, Malaysia Airlines, Garuda Indonesia, and Saudi Arabian Airlines, among many others from around the globe.
While ALAFCO’s portfolio isn’t the largest during the late 2000s and early 2010s, it signed substantial agreements with plane makers to expand its fleet.