Aviation Lease and Finance Company (Alafco) is seeking US$70 million (Dh257m) in damages after Wataniya Airways of Kuwait shut down its commercial operations last month.
Alafco, one of the oldest and largest aircraft leasing companies in the Middle East, has three Airbus A320 aircraft on lease to Wataniya on a contract running from 2009 to 2017. It claimed Wataniya's March 16 announcement it was ceasing all operations was a violation of its deal and requested compensation for loss of revenue.
"Wataniya Airways ceasing its operations is regarded as a breach to the deal", Alafco said in a statement to the Kuwait Stock Exchange yesterday.
Alafco is willing to negotiate with Wataniya for "fair" compensation, according to the statement. The company is owned by Kuwait Finance House and Kuwait Airways.
Wataniya's commercial flights ended on March 15, with the airline citing its precarious financial situation and regional instability. When it launched in early 2009, it became the third carrier based in Kuwait, joining Kuwait Airways and Jazeera Airways.
George Cooper, the chief executive of Wataniya, said the company was heading towards a general assembly of shareholders. "They will decide the future of the company," Mr Cooper said. He added "all options are open", including the possibility of restarting commercial operations.
Wataniya operated seven aircraft, with a route network of about two dozen regional and European cities at the height of its service. But in November the carrier said it would lay up several aircraft and cut routes to stem losses.
It did not disclose its financial results for last year, but it lost $37.8m in 2009 and $5.4m in 2008.
Despite shutting down its flights, the airline has so far resisted making any redundancies among its 400 staff. "All of our staff are currently employed by the company," Mr Cooper said. Wataniya's largest shareholders include Kuwait Projects Company.
In January, Alafco announced an almost tenfold increase in first-quarter net profits, after earning a one-time revenue of 20m Kuwaiti dinars (Dh265.17m). The company plans to have a fleet of 100 aircraft by 2015.
Alafco said it was able to secure about $185m of financing from local and international lenders in the first quarter, which would be used for growth and expansion in the next period.
igale@thenational.ae
* with additional reporting by agencies
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SRI LANKS ODI SQUAD
Perera (capt), Mendis, Gunathilaka, de Silva, Nissanka, Shanaka, Bandara, Hasaranga, Udana, Dananjaya, Dickwella, Chameera, Mendis, Fernando, Sandakan, Karunaratne, Fernando, Fernando.
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
COMPANY%20PROFILE
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Brief scores:
Huesca 0
Real Madrid 1
Bale 8'
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
COMPANY PROFILE
Name: Grubtech
Founders: Mohamed Al Fayed and Mohammed Hammedi
Launched: October 2019
Employees: 50
Financing stage: Seed round (raised $2 million)