The Kuwaiti parliament will vote next Tuesday on the proposed privatisation of flag carrier Kuwait Airways.
On Sunday, the government approved a new structure for the privatisation of Kuwait Airways, under which the state will own 75 per cent of the carrier.
“As per the current law, yes there is a 35 per cent for sale. However, yesterday [Sunday] there was a different approach by the government to keep 75 per cent with the government of Kuwait,” said Talal Al Tamimi, the head of strategic planning office at Kuwait Airways, on the sidelines of the International Air Travel Association annual general meeting in Miami.
“There is a big move by parliament to keep Kuwait Airways under the government.”
Rasha Al Roumi, the chairperson and managing director of Kuwait Airways said: “There is no sale so far. There is another session on June 16 for the parliament to vote and decide.”
Under the new proposal, approved by transport minister Issa Al Kandari, 20 per cent of the airline’s shares will be offered to Kuwaiti citizens, 5 per cent to current and retired employees, and the government will retain the rest, a statement on Kuwait’s news agency Kuna website said.
Previous proposals put the government’s stake at 20 to 40 per cent and allowed strategic investors to own up to 35 per cent.
Kuwait’s listed low-cost carrier Jazeera Airways was one of the investors said to be interested in the stake. Last month it had formally submitted a letter of intent to acquire 35 per cent of Kuwait Airways.
Kuwait’s parliament first approved a plan to privatise the loss-making Kuwait Airways in 2008, but the process has been repeatedly held up. Privatisation was initially delayed as the company planned to first restructure the airline.
Last December, Kuwait Airways’ ageing fleet finally received a boost with the delivery of the first of a series of leased Airbus A320s, its first new aircraft in 17 years.
selgazzar@thenational.ae
* with Reuters
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