Kuwait Airways (KU, Kuwait) officials have come out in favour of a more independent national carrier. With the airline's looming privatization, Kuwait Airways Chief Operating Officer Kamil al-Awadhi told Gulf News that if the airline were to remain a government entity, it would be "a lot harder to run."
Under its original privatization blueprint, government proposed retaining only a 20% stake in Kuwait Airways with the remaining 80% to be distributed to local private equity (35%), Kuwait Airways employees (5%), and Kuwaiti citizens (40%). Rival carrier LCC Jazeera Airways (J9, Kuwait) and local logistics firm, Agility, submitted bids to acquire the 35% stake.
However, earlier this year, government revised the plan stating it would now retain a controlling 75% stake in the carrier while offering only a 25% shareholding to citizens (20%) and airline employees (5%).
The Kuwaiti cabinet recently gave the Communications Ministry the go-ahead to decide on a Kuwait Airways (KU, Kuwait) privatisation law with parliament expected to vote on government ownership of the airline in the coming months.
In the meantime, Kuwait Airways is in the midst of a restructuring programme which has seen orders for narrow- and wide-body aircraft being placed with Airbus (AIB, Toulouse Blagnac) and Boeing (BOE, Washington National).
According to al-Awadhi, the carrier is also considering outsourcing its MRO, cargo and ground handling operations. Once the programme is complete, Kuwait Airways will then embark on an expansion drive which will leverage 5th Freedom traffic rights as well as possible partnerships with other carriers, he said.
