Jazeera records record profits and leasing arm set to buy new aircraft

Unsurprisingly, there is speculation that Jazeera could be mounting an investment into the troubled Kuwait Airways when it begins its much delayed privatisation programme.

Jazeera’s group chairman Marwan Boodai said, “Like 2011, 2012 was another record-breaking year in every sense. This performance continued to be driven directly by a healthy, growing, profitable and sustainable airline business, and a reliable and consistent leasing business. Together, they have proven to be an ideal business combination that generates a sustainable net profit in every quarter.”

 

The airline said that product and customer experience enhancements have also been a driver in the airline’s returns. It introduced new payment and check-in technologies, including mobile apps and self-check-in facilities at Kuwait Airport, the first in Kuwait, and web-check-in throughout the network. By the end of the 2012, one in ten bookings was made on a mobile platform.

 

Operationally, the airline also had one of its best years to date. FlightStats, the US-based center that monitors flights’ on-time performance (OTP) globally, had ranked Jazeera Airways as the world leader in on-time performance in 2012. This is a major achievement for the airline and a boost to Jazeera Airways’ internal OTP and operational excellence culture.

 

The Group closed the year with an improved and healthy balance sheet that is cash-rich with KD47 million. “I thank our shareholders and their statement of confidence in the Group that evident in the 2.25 times oversubscription of the rights issue that was executed and concluded in the fourth quarter,” Boodai said.

 

“This strong performance clearly demonstrates the agility and viability of the Jazeera Airways Group’s business model, which continues to perform even in the wake of high fuel costs and political turmoil in our region.”

 

As well as the airline, Jazeera group own Sahaab Aircraft Leasing which has been a steady contributor since it was bought by Jazeera three years ago.

It has provided aircraft to Jazeera Airways, Virgin America and SriLankan Airlines. 

 

The leasing company is scheduled to receive two new Airbus A320 aircraft in 2013. Both are planned to be inducted into the airline operation, replacing two older aircraft. Sahaab Aircraft Leasing will then undertake to remarket those two older aircraft to regional or international customers.