ALAFCO is increasing the size of its fleet to 17 aircraft.

A prime example of Islamic principles in action is aviation lease and finance company ALAFCO. Ahmad A. Alzabin, the firm’s Chairman and Chief Executive Officer, says: “All our financial operations are Islamic compliant, all involve ethical investing and are equity related—solely using the genuine asset or the cash-flow they generate.”

Over the last three years, ALAFCO has propelled itself into the ranks of the fastest-growing and most successful commercial aircraft leasing firms. Since 2002, during the severest down cycle in the air travel industry, the Kuwait-based company has built a fleet of 12 aircraft, which it leases to airlines in Asia, the Middle East, and Europe.

“During this period our capital quadrupled on account of the company’s outstanding results and the growing confidence of our shareholders,” Mr. Alzabin recalls.

AHMAD A. ALZABIN Chairman and CEO of ALAFCO

ALAFCO was established in 1992 as a prospective subsidiary venture of Kuwait Airways, but was relaunched in 2000 after being acquired by Kuwait Finance House (KFH), which specializes in Islamic banking.

Kuwait’s sole aircraft leasing firm, ALAFCO also offers consultative services in relation to aircraft acquisition and disposal, lease management, and technical monitoring.

Year-end results reported by the company in Sep-tember 2004 show-ed a 98% rise in its total revenues to $39 million over the previous year, while net profits increased to $10 million.

ALAFCO’s asset values total more than $369 million, with 12 owned and 13 managed aircraft, and more than 15 million airline customers. This year, the acquisition of a further five planes will expand the size of its fleet to 17 aircraft.

ALAFCO is investing in emerging technologies that will set the standard for the industry’s future, having signed a memorandum of understanding to purchase 12 Airbus A350 long-haul, medium capacity aircraft. The intention to order is valued at $2 billion and includes an option to buy a further six. Deliveries will start in the third quarter of 2012.

“We believe that Asia in general , and China and India in particular, will remain the fastest growing markets, and over 50% of our present fleet is placed in those countries,” concludes Mr. Alzabin.