Jazeera Airways gets approval for rights issue, and waits finalization of customary ministerial proc

Kuwait-based Jazeera Airways Group announced that an Emiree decree has been issued in approval of the company's decision to raise its capital by 91% to KD42m through a rights issue of 200 million shares to existing shareholders at a nominal value of 100 fils per share.

The rights issue is likely to take place in the fourth quarter of this year once the customary ministerial process is finalized.

Jazeera Airways is listed on the Kuwait Stock Exchange and is one of the few fully-private airlines in the Middle East. However, the Emiree decree is a necessary step because, in Kuwait, companies operating in sectors that are deemed to be of 'national interest' are formalized during the establishment process by an Emiree Decree. These sectors include banks, insurance companies, telecoms and airlines, and therefore it is customary that any changes to Jazeera Airways' articles of association, such as changes in capital, are to be approved by the head of state H.H the Emir of Kuwait and then processed by the Ministry of Commerce and other regulators before having them enacted.

Jazeera Airways has had a record-breaking earnings streak for the past eight quarters, registering record net profits in eight of the last seven quarters.

Last month, Jazeera Airways announced a first half net profit of KD3.8m, up 21.6% from the same period last year, making it the company's best first half on record.

Jazeera Airways Group has a fleet of 15 A320 aircraft, 12 of which already delivered and placed. The remaining aircraft are scheduled for delivery in 2013 and 2014.

The 12 delivered aircraft are distributed between its airline business (Jazeera Airways, operating seven aircraft), and its fully-owned leasing business (Sahaab Aircraft Leasing, operating five aircraft). Sahaab has assets placed with Virgin America and SriLankan Airlines.

In 2011 the airline carried 1.2 million passengers in total across its network that includes today high-demand business, leisure, family, and weekend destinations such as Dubai, Bahrain, Beirut, Alexandria, Amman, Damascus, Istanbul, Sharm El Sheikh, Assiut, Luxor, Mashhad, Sohag, Jeddah, Riyadh, Cairo and Al Najaf.

Jazeera Airways is an IATA member airline and operates one of the youngest Airbus A320 fleet in the Middle East.