FINANCIAL NEWS

Kuwait Airways borrows to pay salaries

17 Aug 2010

(MENAFN) A spokesman for Kuwait Airways Corp said that the company will borrow from local banks to pay salaries, Gulf News reported.

Kuwait’s loss-making national carrier is underway of being privatized and has appointed Citigroup Inc., Ernst & Young and aviation services firm Seabury to handle the process.

The company didn?t disclose the amount of the loan but daily newspaper Al Watan said in a report that Kuwait Airways needed $208.4 million in liquidity.

Boresly said the delay in carrying out the privatization plan which parliament approved in 2008, plus the refusal of the legislature to pass the company’s budgets for the last five fiscal years, were behind the need to borrow.

Under the plan, the government will sell 40 percent of the flag carrier to the public and 35 percent to a long-term investor.

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