ALAFCO sells 5 A320-200 aircraft valued at $325m to Aref Holding Group

The transaction is valued at $325m at list prices.

Rubban plans to operate these aircraft through its subsidiaries in the Kingdom of Saudi Arabia and the Republic of Bangladesh.

The Chairman and Managing Director of Aref Holding Group Dr. Ali Al Zumae stated that Aref Logistics Company (Rubban) was founded for achieving the strategy of parent company Aref.

Through this subsidiary, a business partnership was established with some airlines to carry pilgrims and Moatamers to and from Saudi Arabia, in promotion of religious tourism which is ongoing yearlong, as well as Bangladeshi labor to and from Bangladesh on charter flights.

The Chairman of ALAFCO, Mr. Ahmad Abdullah Alzabin stated in a press statement that the aircraft shall be delivered in 2009, God willing.

These are sophisticated and operationally efficient aircraft made using advanced technologies.

Aref Holding Group is the second Kuwaiti company after Kuwait National Airways to enter into contract with ALAFCO.

The demand for aircraft on lease is increasing all over the world.

Alafco earlier forecasted this demand for leased aircraft and entered into several transactions with aircraft manufacturers Boeing and Airbus.

As a consequence, we have the ability to meet the narrow body and widebody aircraft requirements of major airlines with attractive delivery positions.

Aref Holding Group reached the final stages of negotiations for acquisition of a share of a company owning an aviation academy in South Africa to promote the integration policy of Aref's projects in this field, in particular after the purchase of one new state-of-the-art helicopter and two other aircraft for operation and expansion in Africa.

Alzabin stated, "The regional expansion in the GCC and Middle East region is going on successfully, driven by the transactions made between ALAFCO and different airlines in this region as well as its penetration of world markets particularly in Europe, Southeast Asia, India and China. It is the first leasing company in the region to order the Boeing Dreamliner aircraft. He pointed out that ALAFCO managed in the last year to sign purchase contracts for 66 Airbus and Boeing aircraft amounting to $7bn at list prices. These aircraft will be delivered during the period 2009-2017."