Alrov Real Estate spending 2006 profit on buying exec jet

Are the bubble days coming back? Alrov (TASE:  ALRO) subsidiary Alrov Real Estate is buying an executive jet, explaining that it needs one because of its mushrooming business abroad.

The plane is costing it $27 million, the company says.

Alrov Real Estate, owned by developer Alfred Akirov, operates mainly in Switzerland, France and recently the Netherlands to, where it plans to build a hotel.

The company says is also working on locating other hotels - presumably other hotel opportunities - in Europe and its need for overseas flights has grown substantially.

"A private jet will make the work of the company managers, workers and consultants more efficient," Alrov Real Estate stated. They would be able to concentrate visits to different countries and destinations in a short period of time, which is all the more relevant when visiting destinations to which there are no direct flights from Israel.

The acquisition could advance Alrov Real Estate's investments and transactions abroad, it added. Also, work on renovating the Dutch hotel will require frequent flights by engineers and consultants.

For the record, Alrov Real Estate added that Akirov and his associates will not be making private use of the jet.

For the year 2006 Alrov Real Estate reported netting NIS 116 million, which means the plane is costing it almost all its profit for that year.