Salah, previously the airline’s engineering director, has been appointed to the post following the resignation earlier this month of Barak al-Sabeeh (MEED 11:1:08).

Al-Sabeeh, also general manager of local mobile telecoms operator Zain, was brought in to drive through the privatisation, resigning in frustration over persistent delays and parliamentary opposition.

Kuwaiti MPs have now passed legislation authorising the sell-off, but to get the bill through parliament the government has acceded to MPs’ demands for a two-year delay. A full audit of the business will be carried out to determine its value, with the government expected to appoint two accounting firms to do this by the end of March.

With privatisation now two years off, the government appears to have decided there is little point recruiting a business heavyweight from outside the company in the mould of Al-Sabeeh.

“The government decided to make an internal appointment because the MPs have said privatisation must still wait for two years,” says a company official.

Until the audit is complete, the loss-making airline appears content to tread water. Plans to substantially enlarge the company’s fleet have now been abandoned. Instead the airline will seek to lease two new aircraft this year.

The appointment and the delay to privatisation adds to the general sense of unease at Kuwait’s national carrier, which continues to be propped up financially by its government. “The company is not stable. It will be stable after privatisation,” says the company official.

Salah was unavailable for comment.