Wataniya Airways terminates more than 300 employees
Wataniya Airways has terminated the services of more than 300 employees, keeping 20 caretaker-employees to provide support, until the date of the general assembly, which is due to take place at the end of Apr-2011, where the company's future will be discussed (KNA, 11-Apr-2011). The meeting will be held in order to reach a decision with regards to one of the alternatives concerning the company's future. Meanwhile, Kuwait Aviation Services Company (KASCO) has reportedly requested Wataniya Airways to pay over KWD2.3 million (USD8.3 million), while Kuwait Aviation Fuelling Company (KAFCO) has demanded the airline pay KWD2 million (USD7.2 million). The financial status of Wataniya Airways in 1Q2011 is expected to witness demands from Aviation Lease and Finance Company (ALAFCO) worth USD70 million, which account for installments of leasing three aircraft for the remaining six years as part of the contract signed with the carrier. The company will also bear the loss of KWD6.4 million (USD23.2 million) as a result of cancelling the leasing contracts of three aircraft from Air Cab Company, and one aircraft owned by International Lease Finance Corporation (ILFC).