KUWAIT (Archyde.com) – Kuwait’s Jazeera Airways Chairman Marwan Boodai said the company had amended its financing targets to aim to obtain regarding $1 billion from banks rather than $2 billion to finance 30 percent of an aircraft deal with Airbus rather than 70 percent of the deal as previously planned.
Boodai told Archyde.com that this adjustment came due to the rise in bank interest rates, indicating that the remaining percentage of the deal will be financed through the “sale and lease-back” system, and that the company will study the financing process “case by case… in line with the best cost.”
He explained that the company had already paid 100 million dollars as an advance for the Airbus deal from its own financing, and despite that, its financial liquidity decreased only to 52 million dinars, following it was 55 million at the end of the third quarter.
He expected the company’s aircraft to increase to 22 by the end of 2023 from 19 currently.
He said that the increase in aviation fuel prices cost Jazeera Airways 11 million dinars more in the 2022 budget than what was allocated.
(Covering by Ahmed Hajjajy, The Arabic Bulletin – Editing by Duaa Mohamed)
