Monday, Aug 29, 2011
Gulf News
Dubai Kuwait Airways Corporation’s privatisation committee — PrivComm — will assess expressions of interest (EOIs) made to purchase a 35 per cent stake in the carrier following the expiry of the August 25 deadline for submissions.
“The Privatisation Committee of Kuwait Airways (PrivComm) has confirmed the close of the initial Expression of Interest phase of the proposed privatisation programme,” the company said yesterday in a statement.
It added that Privcomm will work closely with its advisers to assess the EOIs received to date. While the company did not divulge details on the number of companies that submitted EOIs, it said in the statement: “An update to the market will be provided in due course.”
It added: “PrivComm remains committed to ensuring the best option for securing the future of the airline that serves the needs of the people of Kuwait and the national economy.”
Firms eligible
However, the privatisation committee said in an August 1 statement that the only firms eligible for the stake sale would include joint-stock companies listed on the Kuwait Stock Exchange or some specialised international companies, adding that the subscription process was not open to Kuwaiti domiciled airline operators. It further said that all identified assets, liabilities, rights and benefits of the Kuwaiti carrier will be transferred to a new company called Kuwait Airways Company KSC, of which Kuwait Investment Authority (KIA) planned on owning 20 per cent.
Kuwait Airways, which made a full-year net loss of $556 million (Dh2.04 billion) in 2010 and carried 2.62 million passengers, hasn’t made profit since the 1990 Iraqi invasion. In January 2008, Kuwait’s parliament decided to sell shares in the airline.
Kuwait Airways Corporation, however, said in May that it is confident of recovering all of $1.2 billion from Iraqi Airways — following a 21-year chase — in compensation from Iraqi Airways Company (IAC) for the theft of 10 aircraft and spare parts seized by Iraq in the 1990 invasion of Kuwait
Established in 1954, the state-owned carrier currently boasts a fleet of 17 aircraft, and is the leading carrier in Kuwait.
$556m
Kuwait Airways loss in 2010
2.62m
passengers carried by the airline in 2010
$1.2b
expected in compensation from Iraqi Airways
By Shweta Jain?Senior Reporter
Gulf News 2011. All rights reserved.
