23-Apr-2012 1:46 PM

Kuwait Airways privatisation draft legislation approved by Cabinet

Kuwait's Cabinet approved draft legislation to privatise Kuwait Airways Corporationas reported by KUNA. Under the legislation, 35% of the carrier will be sold to the highest bidder, with shares available to carriers registered on the Kuwait Stock Exchange, as well as local or international strategic investors or airline companies. A three-year trading freeze would be imposed. The Kuwait Government would retain a 20% shareholding, while another 5% would be owned by an employee share ownership trust. 40% of the shares would be allotted “equally and for free” to Kuwaiti nationals through the Public Authority for Civil Information, with a one-year trading freeze. Under the privatisation plan, employees unwilling to work for the privatised carrier or be reassigned to the Government would be offered a three-year salary payoff. Kuwait Communications Minister Salem al-Athaina said the privatisation should occur within a three-year time frame.