Kuwait Airways privatisation progresses through parliament

London
Source:
This story is sourced from Pro
See more Pro news »

A parliamentary committee in Kuwait's National Assembly has approved an act outlining the latest manifestation of the flag carrier's elusive privatisation.

Without providing details, state news agency KUNA affirmed that the act will oversee the transformation of Kuwait Airways into a share-holding company.

"The approval was taken after both the minister [Salem Al Utheina] and KAC chairman [Sami Al Nisf] gave written statements obliging them to present a three-year action plan," committee member Safa Al Hashem reportedly said.

Previous efforts by the government to find a strategic investor for 35% of the carrier came unstuck last year, amid repeated dissolutions of parliament.

Speaking to Flightglobal in September 2012, Kuwait Airways board member Adel Boresly said the upcoming privatisation bill was expected to push through underlying restructuring before an investor is found.

KUNA's report alluded to the need for a comprehensive overhaul, quoting Al Hashem as saying the parliamentary committee had discussed a raft of issues, including the "run-down fleet, accidents, malfunctions, delays, as well as employees' financial benefits".

Previous plans to renew the fleet - including an order for 12 Boeing 787s - were shelved in 2007, when parliament opted to focus on privatisation instead.