Doha: Jazeera Airways will look to regional banks to fund its soon-to-be announced fleet renewal and expansion order, chairman Marwan Boodai told ‘Gulf News’ in Doha on Monday. He was speaking on the sidelines of the International Air Transport Association (IATA).
Boodai said Jazeera Airways will “go after local markets” given that regional banks have significantly upped their activity in aircraft financing since the financial crisis. He added that 75 per cent of cash needed for the fleet order will come from external equity.
“The board will announce our next acquisition by the fourth quarter,” Boodai said of the fleet renewal programme.
Jazeera Airways operates 15 narrow body Airbus A320 aircraft used to primarily serve a network of destinations up to two-and-half-hours out of Kuwait. Boodai said there are no plans to deviate from its business model and will expand to destinations within two-and-half-hours of its hub.
“Kuwait is a very rich market,” he said.
Jazeera Airways, a self-proclaimed ‘Middle Eastern style’ low cost carrier that offers inclusive luggage, meals and business cards, will start taking delivery within the next three years. Boodai said that more than 50 per cent of its existing fleet will be replaced in the order.
Jazeera Airways has a capital of 42 million Kuwaiti dinars (Dh547 million) on hand while reserves of more of more than 50 million Kuwaiti dinars.
He said no decision had been made on whether the airline would opt for the Airbus A320neos or the Boeing 737maxs. He said that that the airline will not take any classic models.
“The fuel-saving the new generation offers is extremely attractive for an airline like Jazeera,” Boodai said.
