Kuwait’s low-cost carrier Jazeera Airways is selling 15 Airbus A320 aircraft owned by its leasing firm for $507 million to help fund the expansion of its passenger business, it said on Thursday.
In a move out of leasing, the carrier will sell aircraft from Sahaab Aircraft Leasing to a joint venture between South Africa’s Investec Bank and Hong Kong-based Chow Tai Fook Enterprises, Jazeera Airways said in a statement.
“The transaction will result in additional cash surplus of 24 million dinars ($81.7 million) and will lift Jazeera Airways Group’s cash balance to 82 million dinars in 2015,” it said.
Cash from the sale will go towards the distribution of exceptional cash dividends and financing the expansion of the company’s business lines that complement the passenger airline business, the statement said.
The sale value will be reflected in fourth-quarter 2014 earnings, while the deal is likely to be completed in the second quarter of 2015, pending regulatory approvals.
Jazeera Airways in November said it was preparing to make a bid for a 35 percent stake in loss-making state carrier Kuwait Airways.