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Kuwait Airways' privatisation running on schedule; Middle East shares on the rise

Analysis

Unlisted Kuwait Airways Corporation (KAC) announced it has received offers for partnership from investment banks, auditing companies and aviation companies to promote shares in the airline and supervise a tender for a strategic partner. KAC will also be cooperating with the World Bank to review the offers by 01-Aug-2010.

Summary
  • Kuwait Airways Corporation (KAC) has received offers for partnership to promote shares in the airline and supervise a tender for a strategic partner.
  • KAC will be working with the World Bank to review the offers by August 1, 2010.
  • The privatisation of KAC is on schedule, with the implementation of law 6/2008 to privatise the company already underway.
  • Middle Eastern airline shares, including Royal Jordanian and Jazeera, were mostly on the rise.
  • African airline shares, including Lonrho and Comair, were mixed, with Kenya Airways and 1time showing positive movements.
  • The data is sourced from the Centre for Asia Pacific Aviation and Reuters.

Last week, KAC Chairman and Managing Director, Hamad al-Falah, stated the privatisation of the airline is on schedule. On 03-Mar-2010, the Constituent Committee commenced the implementation of law 6/2008 to privatise the company, with the Kuwait Investment Authority (KIA) to establish the new company. The committee has completed a draft of the contract of Establishment and the Company Charter and appointed Abdul Hameed Al-Sarraf and Partners, with Baker and McKenzie for advisory services.

See related CAPA profile: Privatisation and ownership

Middle Eastern airline shares were mostly on the rise yesterday with Royal Jordanian (+1.3%) and Jazeera (+3.6%) up, while Wataniya's parent, Kuwait National Airways, remained stable.

African shares were mixed, with Lonrho (-4.6%) and Comair (-2.9%) down and Kenya Airways (+0.6%) and 1time (+3.5%) on the rise.

Selected African and Middle Eastern airlines share price movements (% change): 26-Jul-2010

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