Kuwait Wataniya Talks With Alafco On $70M Compensation Positive-Report

Tuesday, May 31, 2011

BEIRUT (Zawya Dow Jones)--The outcome of Kuwait National Airways' (KNA.KW) talks with the local Alafco Aviation Lease and Finance Co. over the $70 million in compensation for termination of aircraft leasing contracts, will be known within 10 days, Kuwait-based Al Anba daily reports Tuesday citing an executive.

The talks are positive and don't include an option for Alafco to acquire a stake in his company, the paper reports citing Abdulsalam Al Bahar, chairman and managing director of the airline, better known as Wataniya Airways.

Wataniya's shareholders have postponed approving a capital increase to 65 million Kuwaiti dinars ($236.5 million) from KWD50 million until the results of the talks with Alafco are known, the daily reports.

Part of the capital hike will be used to repay some of Wataniya's obligations and rest will fund the resumption of its operations. Between KWD5 million and KWD6 million is needed in the first phase for operating two or three aircraft, he said according to Al Anba.

Newspaper website: http://www.alanba.com.kw/AbsoluteNMNEW/templates/economy2010.aspx?articleid=200377&zoneid=17&m=0

-By Beirut Bureau, Zawya Dow Jones; +961-1-985 757; BeirutZDJ@zawya.com

(END) Dow Jones Newswires

31-05-11 0508GMT