ALAFCO calls for Wataniya to settle on $70million lease shortfall

ALAFCO, the Kuwaiti aviation lease & finance company is calling on Wataniya Airways principals to pay back about $70 million for the remaining period of an aircraft leasing deal.
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"ALAFCO had signed a deal to lease three aircraft to Wataniya Airways from 2009 to 2017," the company said in a statement to the Kuwait stock Exchange today. "Wataniya Airways ceasing its operations is regarded as a breach to the deal."

ALAFCO said it is willing to negotiate with Wataniya Airways for a "fair" compensation for the damage it incurred due to Wataniya halting its operations, according to the statement.

Wataniya Airways, the Kuwaiti carrier that started operations in January 2009, said on March 16 it will cease all operations. and last week it said it is studying the conditions of two leasing companies to take back four planes it had leased.

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