Wataniya scraps capital hike plans

Kuwait, June 21, 2011

Kuwait's luxury air carrier Wataniya Airways, which ceased operations in March, has cancelled plans for a KD15 million ($54.64 million) capital hike, it said on Tuesday.

Wataniya Airways, a regional luxury airline that launched in 2009, also ended the services of its chief executive.

The carrier had linked its capital increase to a settlement with Aviation Lease & Finance Co (Alafco), which Wataniya said was not reached.

'Based on the annual general meeting decision to postpone discussing the 15 million capital increase until negotiations with Alafco are settled, ... the board decided to scratch off this article during the next irregular meeting,' the statement said.

In a separate statement to the bourse, Alafco said they had not yet received a response from the airline for a proposed settlement.

The carrier's board also decided in a meeting last week to end the services of its chief executive George Cooper.

The company reported a net loss in 2010 of KD14.1 million compared with KD10.9 million a year earlier. – Reuters

Tags: Kuwait | Alafco | Capital hike | Wataniya Airways |