Global Arab Network | Kuwait seeks bids to buy stake in national Airways

Translate this article to your language:

GANPublications

e-Publications

Add Site to Favorites

Add Page to Favorites

Make Homepage

Share This Page

RSS Feed

--------------------------------------------------------------------------------------------------------------------
| |

Kuwait seeks bids to buy stake in national Airways

Global Arab Network - - Ayman Khalil

Wednesday, 03 August 2011 01:49

Global Arab Network - Kuwait invited bids from local and international investors to buy a stake in Kuwait Airways as part of a privatisation process to turn the loss-making airline into profit.

The privatisation committee of Kuwait Airways said in a statement that interested parties should submit their "expression of interest" to participate in the bidding for 35 percent of the airline.

The process, open to companies listed on the Kuwait Stock Exchange and specialised international companies, closes on August 25. Local airline operators are banned from taking part.

The privatisation committee has been formed to transform the state-owned Kuwait Airways Corp. into a private company and to transfer assets, liabilities, rights and benefits from KAC in accordance with a law passed in January 2008.

International firms have valued the assets of Kuwait Airways at 220 million dinars ($800 million).

The airline's privatisation law stipulates the sale of 35 percent of the private company to a strategic investor and 40 percent to be sold to Kuwaiti citizens in an initial public offering.

Five percent will be granted to Kuwaiti employees while the remaining 20 percent will be held by Kuwait Investment Authority, the OPEC member sovereign wealth fund.

Kuwait Airways has posted a loss in all but one of the past 21 years, accumulating losses of more than $2.7 billion.

The airline has an ageing fleet of 15 Airbus and two Boeing aircraft.(AFP)

Global Arab Network

Add comment

The opinions of the authors in articles published are theirs alone and do not necessarily reflect the views of Global Arab Network
------------------------------------------------------------------------------
Published comments are the opinions of private individuals and do not reflect the views of Global Arab Network