Kuwait’s cabinet backs new law to privatise Kuwait Airways: Reuters

Posted: April 23, 2012 in Airlines, Middle East
Tags: , , , ,

(Reuters) – Kuwait’s cabinet approved an amended draft law on Sunday paving the way for the privatisation of Kuwait Airways within three years, state-run news agency KUNA reported, after restructuring at the troubled carrier delayed the original plan.

Kuwait's cabinet backs new law to privatise airline

The government will retain a 20 percent stake

Kuwait’s parliament first approved a plan to privatise the loss-making Kuwait Airways Corp. (KAC) in 2008, but the process has been repeatedly held up. The committee responsible for the privatisation last delayed the plan in October, saying the company would concentrate on restructuring first.

Under the new draft law, which still needs to be approved by the National Assembly, the government still plans to offer a 35 percent stake in the airline to companies on the country’s stock exchange and to “specialised” local or international firms, KUNA said.

This auction should happen within the next three years, it quoted Communications Minister Salem al-Athaina as saying.

The stake would go to the highest bidder and the shares would not be allowed to be traded for three years, it said.

The carrier will change its name to Kuwait Airways Company and be a shareholding firm “which would consequently own all assets and properties of KAC,” KUNA said.

Read the full story at Reuters….


Kuwait: 23rd April 2012
Reporting by Sylvia Westall


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