Proceeds from leasing the plane are expected to total $22 million.
Global Knafaim Leasing announced today it had completed an agreement to buy an Airbus plane for $30 million. The plane is leased to Air Berlin until 2019, with a two-year extension option. Proceeds from the leasing agreement (not including exercise of the option), which are fixed and monthly, are expected to total $22 million. The deal is being financed through the expansion of a bond series in July, but the company announced it had agreed on financing terms with an Israeli bank. If and when the bank financing agreement is completed, the company will issue a report.
Knafaim Leasing CEO Sidney Slasky said, "The deal is another step towards implementing our program for renewing our airfleet and making it more up-to-date."
Knafaim is a wholly-owned subsidiary of Knafaim Holdings Ltd. (TASE: KNFM), an aviation holding company controlled by the Borovich family. The company's other main holding is a controlling interest in El Al Israel Airlines Ltd. (TASE: ELAL). Knafaim today published its second quarter financial reports showing a 6.2% rise in revenue to $587 million, compared with the corresponding quarter last year, and a $13.9 million net profit, double its profit in the first quarter of 2013. At the same time, the company's revenue was up only 2% to $1 billion in the first half, and the company posted a $25 million loss in the first six months of 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on August 24, 2014
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