Kuwait Airways Corporation to place assets into a holding company: Privatisation progress

Kuwait Airways Corporation Chairman, Hamad al-Falah, reportedly announced the Kuwait Investment Authority has been authorised to establish a shareholding company to hold the carrier's assets, named Kuwait Airways Co (Bloomberg, 04-Mar-2010). Assets include 17 aircraft - two B777s and a mixed fleet of A340s, A310s, A320s and A300-600s. Kuwait Investment Authority is currently forming a committee, which has 12 months to implement the privatisation. The fund plans to offer a 40% stake to the public, 35% to a strategic investor and a 5% stake to employees, and retain the remaining stock. The new company will be established with capital of USD762 million (KWD220 million).

Kuwait Airways Corporation: "The Cabinet is going ahead with the privatization and the KIA has taken over the process of the legal matter to transfer the company. We hope to complete the process this year," Hamad al-Falah, Chairman. Source: Bloomberg, 04-Mar-2010.