The founders of Kuwaiti carrier Jazeera Airways are setting up a new leasing company that will order up to 50 planes from Airbus and Boeing next year to meet surging aviation traffic in the Gulf.

The low-cost carrier said in a statement that founders Kuwaiti investment bank NBK Capital and German transport finance bank DVB Bank would jointly launch the $375 million aircraft leasing company by year-end.

Jazeera Airways chief executive Marwan Boodai told Reuters the new company, called Shabab Aircraft Leasing Company, would make a first order by mid-2009 of narrow-body A320 and B737 planes in a deal worth $3 billion.

'The Gulf offers plenty of growth opportunities. Cash is here,' Boodai said, adding that the firm was in talks with several airlines, and his airline would itself be the first customer.

The Kuwait-based leasing company would initially focus on Gulf carriers and then from around 2010 expand to North Africa, India and Europe, Boodai said.

Several new airlines have been launched in the Gulf recently, with Kuwait's Wataniya Airways expected to start operations in January.

The new company, which will compete with Kuwait's Aviation Lease & Finance Co (Alafco), plans to become the largest narrow-body aircraft lessor in the Middle East by 2012 and one of the top global players by 2020.

Boodai said the company would list its shares in the Kuwait or United Arab Emirates at some stage later.-Reuters