Iver
7th Feb 2013, 00:52
Has Kuwait Airways been a good place for expats or have most migrated onwards to EK and QR? Good news for the existing crews even though not much fleet growth. Would be great to see some A350s/787-900s ordered.
See article:
Assembly approves law to privatise Kuwait Airways – Carrier to buy 20 new planes – Corporate law passed
KUWAIT: The National Assembly yesterday approved an Amiri decree calling to transform Kuwait Airways Corporation (KAC) into a shareholding company operating on a commercial basis. Twenty-nine MPs and Cabinet ministers voted for the law, nine voted against it while six lawmakers abstained. Chairman of the new Kuwait Airways Company Sami Al-Nasef told the Assembly that only 10-12 aircraft of KAC’s ageing fleet of 17 planes were operational while the rest were under “extended maintenance”.
“Initially we plan to replace the current old fleet of 17 aircraft. We look to purchase 20-21 new aircraft within the next two years, and the process will be gradual,” Nasef said, adding it was still premature to put a price on the planned purchase of aircraft, half of which will be small and the other half large. Nasef later told reporters that the new company is actively negotiating with aircraft manufacturers in order to buy new planes as early as possible.
Nasef and Communications Minister Salem Al-Othaina, who oversees the carrier, had warned that without passing the decree, the loss-making KAC will incur more losses. Othaina said that during the past four years, KAC posted a loss of KD 105 million and the airline took loans from local banks worth KD 180 million. Under the legislation, the government will pay all the losses posted by KAC because it is a totally state-owned establishment. Some MPs estimated the losses the government will pay at KD.450 million while others said the government is obliged to pay all the losses posted by KAC since 2004.
The new decree amended several key articles in a law passed in Jan 2008 to privatize KAC within three years, but the law could not be implemented because of no foreign or local investors bid to purchase the 35 percent stake of KAC under the law. Othaina said major obstacles obstructed the implementation of the law because it was issued just before the global financial crisis and that it continued to post losses. MP Safa Al-Hashem said KAC is “clinically dead” and the decree was needed to revive it, adding that it only has just KD 5 million in cash and without passing the decree, it will need to borrow more money.
Nasef said KAC has been badly affected by political disputes between the government and previous assemblies and as a result, previous assemblies refused to pass the final statements of KAC since 2004, thus preventing the government from paying its losses and forcing the company to borrow, which complicated its losses. The Assembly also passed the new corporate law which replaces the old law that was issued in the 1960s and was described as outdated.
By B Izzak, Staff Writer
See article:
Assembly approves law to privatise Kuwait Airways – Carrier to buy 20 new planes – Corporate law passed
KUWAIT: The National Assembly yesterday approved an Amiri decree calling to transform Kuwait Airways Corporation (KAC) into a shareholding company operating on a commercial basis. Twenty-nine MPs and Cabinet ministers voted for the law, nine voted against it while six lawmakers abstained. Chairman of the new Kuwait Airways Company Sami Al-Nasef told the Assembly that only 10-12 aircraft of KAC’s ageing fleet of 17 planes were operational while the rest were under “extended maintenance”.
“Initially we plan to replace the current old fleet of 17 aircraft. We look to purchase 20-21 new aircraft within the next two years, and the process will be gradual,” Nasef said, adding it was still premature to put a price on the planned purchase of aircraft, half of which will be small and the other half large. Nasef later told reporters that the new company is actively negotiating with aircraft manufacturers in order to buy new planes as early as possible.
Nasef and Communications Minister Salem Al-Othaina, who oversees the carrier, had warned that without passing the decree, the loss-making KAC will incur more losses. Othaina said that during the past four years, KAC posted a loss of KD 105 million and the airline took loans from local banks worth KD 180 million. Under the legislation, the government will pay all the losses posted by KAC because it is a totally state-owned establishment. Some MPs estimated the losses the government will pay at KD.450 million while others said the government is obliged to pay all the losses posted by KAC since 2004.
The new decree amended several key articles in a law passed in Jan 2008 to privatize KAC within three years, but the law could not be implemented because of no foreign or local investors bid to purchase the 35 percent stake of KAC under the law. Othaina said major obstacles obstructed the implementation of the law because it was issued just before the global financial crisis and that it continued to post losses. MP Safa Al-Hashem said KAC is “clinically dead” and the decree was needed to revive it, adding that it only has just KD 5 million in cash and without passing the decree, it will need to borrow more money.
Nasef said KAC has been badly affected by political disputes between the government and previous assemblies and as a result, previous assemblies refused to pass the final statements of KAC since 2004, thus preventing the government from paying its losses and forcing the company to borrow, which complicated its losses. The Assembly also passed the new corporate law which replaces the old law that was issued in the 1960s and was described as outdated.
By B Izzak, Staff Writer