ALAFCO leases Boeing 777 to AI

Kuwait's ALAFCO has leased a Boeing 777-200 aircraft to Air India, bringing to 5 the total number of planes leased to that airline.

Kuwait's Aviation Lease and Finance Co (ALAFCO) said on Saturday it has leased a Boeing 777-200 aircraft to Air India, bringing to five the total number of planes leased to that airline.

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ALAFCO said in a statement it leased the long-range $75-million plane for five years but did not disclose how much the latest deal is worth.

ALAFCO signed in November a $2.9 billion deal with European aircraft maker Airbus for 12 A350-800s with an option to buy six more. ALAFCO plans to increase its fleet to 50 commercial jets in the next few years.

In the statement, ALAFCO said 2005 profits rose 14 per cent to 3.5 million dinars while the value of its assets increased to 105.6 million ($361.2) and shareholders equity rose 6 per cent to 2.24 million dinars.

ALAFCO operates under Islamic sharia rules that ban interest. Leading Islamic bank Kuwait Finance House owns 89 per cent of ALAFCO and the rest is held by national flag carrier Kuwait Airways Corp.