Business of…Kuwait Airways
With Kuwait Airways’ stake sale likely to be the first privatisation of a Gulf-owned carrier (if anyone actually shows interest), Kipp looks at what could have happened that has led the airline to its downward spiral.
August 4, 2011 11:50 by shafeer
Chairman and Managing Director of Kuwait Airways Corporation (KAC) Hamad Abdullatif Al-Falah said this August saw Kuwait’s national carrier come up KD 10 million in combined 2010-2011 profits from its Dubai-based business centre and KAC headquarters. The company was also expanding networks to Tunisia, Morocco and Mauritania.
But unfortunately, the company hasn’t made any real profits for the past two decades. In June, Kuwait Airways posted a $276 million loss in 2010-2011. The carrier suffers from an excess of employees, with the budget allocated for wages exhausting finances by an annual KD 100 million.