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Jazeera acquires Sahab for USD 89 mln |
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Business News
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Monday, 15 February 2010 23:15 |
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KUWAIT, Feb 15 (KUNA) -- Kuwait's private carrier Jazeera Airways said on Monday it had fully acquired Sahab Aircraft Leasing Company for KD 25.6 million dinars (USD 88.77 million).
The acquisition gives Jazeera Airways a platform to pursue strategic vertical integration initiatives lined up for 2010 and 2011 that include an airline acquisition and access to global leasing markets, Jazeera Chairman Marwan Boodai said in a statement on Monday.
The acquisition deal will surely have a favorable impact on shareholders' equity, and will even provide the carrier with a firm financial basis that could boost its capability for carrying out its integrated strategy in spite of economic fluctuations, he added.
Necessary procedures for completing the deal are to be completed by March 31, 2010, and both companies' revenues are to be merged as of January 1, 2010, thus raising Jazeera Airways' profits by KD 1.2 million for the first quarter of this year, Boodai noted.
However, Sahab will remain operating as a subsidiary of Jazeera Airways, and offer its services to other regional airlines, he said.
In January, the Kuwaiti private carrier said that it was eyeing acquisitions in firms and airlines in the Middle East.
Sahab will have a minimum fleet of 38 Airbus A320s by 2016 based on confirmed orders with the manufacturer, he said, adding that it currently has a fleet of nine Airbus A320s.
Jazeera has a firm order for 29 Airbus A320 aircraft and currently operates 11 planes across the Middle East and North Africa. - Kuna
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