Kuwaiti low-cost carrier Jazeera Airways has acquired local aircraft leasing firm Sahaab Aircraft Leasing Company for KD25.6m ($88.7m).

Jazeera aims to develop its business through a series of acquisitions, infrastructure investments and partnerships during 2010 and 2011, according to a Jazeera statement issued on 15 February.

The deal is expected to be completed by 31 March and Jazeera will be able to consolidate Sahaab’s earnings from 1 January 2010.

The acquisition will be financed through a rights issue in the third quarter. A rights issue means that existing shareholders have the opportunity to buy a certain number of shares at a set price within a specific timeframe.

Sahaab owns a fleet of nine Airbus A320s and hopes to increase this to 38 A320 planes by 2016.

Sahaab will continue as a fully-owned subsidiary of the airline.