Kuwaiti Jazeera Airways sells 15 Airbus aircraft

(MENAFN) Kuwait-based Jazeera Airways announced the sale of 15 Airbus A320 aircrafts owned by the group's Sahaab Aircraft Leasing for USD507 million, resulting in the group having a cash surplus of USD81.8 million, Gulf News reported

The carrier said that the transaction, which was signed with joint venture between Investec Bank and Chow Tai Fook Enterprises Limited as the buyers, will also result in raising Al Jazeera Airways Group's cash balance to just over USD279 million in 2015, making it debt-free, adding that the sale is part of a strategic shift to a leased aircraft operation, and a focus on the passenger airline business.

"The move to divest from the leasing business, though profitable, by selling our fleet and continuing with a leased-aircraft operation was a strategic decision to enhance the airline's business model and focus on future growth opportunities, boost shareholder value and enhance return on equity," said chairman of Jazeera Airways Group.