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FINANCIAL NEWS
Jazeera Airways eyes 35 percent stake in Kuwait Airways
27 Oct 2014
(MENAFN) Jazeera Airways, Kuwait’s privately owned carrier, said that it is preparing to bid for a big stake in state-run flag carrier Kuwait Airways in a deal that might change the business scene in the Gulf region, Arabian Business reported.
Jazeera Airways, which was set up in April 2004, is one of a handful of privately owned airlines in the Gulf and now operates a fleet of 15 Airbus A320s.
The carrier said it is currently preparing to enter a bidding process for a 35 percent strategic stake in loss-making Kuwait Airways, which the government has been trying to save for several years.
For several decades, Gulf Arab economies have been dominated by the heavy hand of the state, which has been helped by the huge oil revenues to make investments in the different sectors of its countries and resulting in eclipsing the private sector activity.
These state-owned companies have been benefiting from these oil revenues, while many private companies have struggled to raise financing and become ensnared in official red tape. However, Kuwait Airlines have not been of these successful government-owned companies, thus leading the Kuwaiti to begin considering privatizing the carrier.
‘We believe in privatization and think governments should focus on political administration, and not on managing airline companies or transportation or other firms,’ Jazeera Airways Chairman said.
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