With its prospects of securing a sizeable stake in Kuwait Airways (KU, Kuwait) fading, Jazeera Airways (J9, Kuwait) is now seriously considering partnering a foreign carrier in the launching of longhaul services airline chairman Marwan Boodai has said.
Speaking to Reuters, Boodai said the Kuwaiti LCC was now studying potential longhaul routes. Once suitable destinations have been identified, then the search for a suitable strategic partner would begin.
"Plan 'B' is tying up with an international player to go long-haul," he said. "We're seriously considering this now."
Last year, the carrier hinted at acquiring its own widebody aircraft ahead of its planned expansion into the longhaul services sector.
Meanwhile, the Kuwaiti parliament's financial and economic affairs committee has approved amendments to the Kuwait Airways privatization act which allow government to retain a 75% stake in the carrier. The move effectively puts an end to the airline's privatization plans where Jazeera Airways and local logistics firm Agility had sought to acquire a 35% stake in the airline.
As it now stands, a 20% stake in Kuwait Airways will be availed to investors through an IPO while the remaining 5% will be allocated to past and present airline employees (3% to current staff, and 2% to retirees).
To tide Kuwait Airways through its current restructuring and fleet renewal programme, parliament has also agreed to grant it an additional KWD600 million (USD1.98 billion) in state funding.
