Kuwait’s low-cost carrier Jazeera Airways has formally submitted a letter of intent to acquire 35 per cent of Kuwait Airways, which is currently undergoing a privatisation process by the country’s government.

The 35 per cent stake is the maximum allowed stake by a single private investor as stipulated under the Kuwait Airways Privatization Law 6/2008 and its accompanying amendments, a statement said.

The privatisation of Kuwait Airways will be the first privatisation exercise transaction by the government of Kuwait that exceeds the $3 billion mark.

“Today, we launch our bid for the acquisition of 35 per cent of Kuwait Airways, armed with a vision to grow Kuwait Airways into a leading airline that meets the ambitions of the Kuwaitis and travellers across the world, starting by reclaiming Kuwait Airways’ home market,” said Marwan Boodai, Jazeera Airways chairman.

“As witnessed in airline privatization exercises over the last 50 years, we believe an efficiently run Kuwait Airways with a private sector management approach benefits all stakeholders, especially employees who will be presented with an opportunity to transform and grow the airline into one that travellers seek as a first choice rather than a last resort,” he added.

Kuwait Airways is one of the oldest airlines in the Middle East and in recent decades the airline was impacted by bureaucracy, politicization of the organization, and absence of vision, all of which contributed to the stagnation of the airline which prompted the Kuwait National Assembly and the Government of Kuwait to embark on privatizing the airline.

“Ultimately, we are bidding for Kuwait Airways because we believe in the Kuwaiti economy and in the talents within the organization. We believe Kuwait Airways should operate as an organization that rewards employees for commitment and innovation, and should we succeed in winning the bid, Kuwait Airways employees will be the reason why we succeed in transforming the airline,” added Boodai.

Logistics firm Agility has also been linked with bidding for the stake.

Operating since 2005, Jazeera Airways is the first 100 per cent privately owned airline in the Middle East and remains to this day among one of a handful of non-government owned airlines in the region. – TradeArabia News Service and Reuters