aviation at large, the ALAFCO team are skilled in finance, marketing, legal, operational and the technical considerations required in the negotiation of transactions in aircraft. They have established excellent business and personal relationships with the leading commercial aircraft companies and the supply chain emanating from them. Everyone at ALAFCO takes pride in delivering high quality wide-ranging services to their customers and this has paid dividends by elevating ALAFCO to the very top of its chosen industry sector. HISTORY ALAFCO Aviation Lease and Finance Company K.S.C.C. was established in 1992 as an offshore company by Kuwait Airways Corporation. The majority shares were acquired by Kuwait Finance House in 2000, subsequent to which the company was re-registered in the State of Kuwait. ALAFCO was listed on the Kuwait Stock Exchange in October 2006. Ownership • Kuwait Finance House – 53% • Kuwait Airways Corporation – 11% • Investors – 36% sensitive to business cycles and increasingly In the wide body category, ALAFCO ordered PRODUCT competitive. Against this mixed background, the new technology GEnx powered Boeing B787 Simply put, they only do that which they no individual or corporate investor can Dreamliner aircraft along with the A350- are good at and they do it exceedingly well. be considered exempt from the industry’s XWB. These aircraft will be manufactured with ALAFCO’s competencies meet the requirements uncertainties. This is why ALAFCO offers a range advanced technology light weight material that of carefully chosen competitive grounds and of advisory services to other parties in relation will give unprecedented fuel savings, operating should those requirements fall beyond their to aircraft acquisition, aircraft marketing and reliability and efficiencies that will contribute to boundary of possibility they are quite content to remarketing for sale or lease, along with aircraft substantial cost saving to their airline customers. join forces with the finest in the trade to offer and lease management thereby guarding the ALAFCO was the first company in the Middle their customers the best of all worlds. The three values of customers’ assets and ensuring a good East to order the Boeing B787 Dreamliner aircraft. principle activities of their company are: return on their investments. Operating Leasing Aircraft In Current Portfolio BRAND VALUES Typically ALAFCO, as lessors, acquire certain The company leases Airbus and Boeing passenger ALAFCO’s brand has become predominant equipment at their own risk and transfer it jets on operating leases to globally. The because it is about integrity and excellence in to the lessee as the lease object for a certain portfolio consists of 27 owned and managed customer service. payment over a certain period of time and on aircraft from Airbus and Boeing aircraft families. ALAFCO will always be keen to listen to certain terms into temporary possession and The type of aircraft currently on lease are as the market, look at the things they are good at for purposes of utilisation. The period of time follows: and then put the two together to offer service over which the lease object is transferred to the • Airbus A320-200 improvements which satisfy their worldwide lessee is for a minimum of three years. • Airbus A319-100 customers’ most exacting needs. Operating leases are attractive to many lessee • -200 ALAFCO unfolds its corporate message airlines as a way to manage obsolescence risk, • Airbus A340-300 by way of its characteristic competencies and because the lessor retains ownership of the • -300 through its strong tie- ups with its equipment and the asset risk associated with it. • Boeing B737-800 shareholders and other industry Today, 40-50% of the world fleet is on • Boeing B777-200ER and industry- related operating lease, with an additional 15-20% in a • Boeing MD-11F partners, therefore finance lease structure. Furthermore, 40% of all reaching over the core future deliveries are needs of its customers in to lessors. the Middle East and Sale and Worldwide. Leasebacks This is one of the types of leasing products where the seller (airline) of the lease equipment concurrently acts as the lessee. Although these type of transactions RECENT are structured as operating leases, the DEVELOPMENTS www.-kw.com prospective lessee’s purpose and implicit benefit To meet the ever is often to raise capital by refinancing owned increasing global demand for aircraft over the assets. Since refinancing risks differ from those next ten years, ALAFCO has placed orders for 70 Things you didn’t know about incurred in leasing additional equipment needed new narrow and wide body aircraft from Airbus for growth, it is an industry, and an ALAFCO, and Boeing valued at USD 10 billion at catalogue ALAFCO norm that a prospective customer has to have a prices. The ordered aircraft include the very valid, productive reason for a sale and leaseback. popular Airbus A320-200 and Boeing B737-800 in ALAFCO was the first shariah compliant aircraft Aircraft and Aircraft Lease Management the narrow body category. These CFM powered lessor in the world Air Transportation is a fast growing industry, aircraft will give the airline customers of ALAFCO ALAFCO was the first Middle Eastern company to however it is highly capital intensive, highly the reliability and success they seek. order Boeing’s Dreamliner B787 aircraft.

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