Kuwait is delaying the privatisation of Kuwait Airways Corporation (KAC) to make a restructuring plan.
“The delay in privatising KAC gives us the opportunity to address a number of operational and structural issues ahead of a future privatisation programme,” says Motlaq al-Sane, chairman of the Privatisation Committee of Kuwait Airways (PrivComm).
PrivComm has now finished reviewing the expressions of interest in participating in the privatisation of Kuwait Airways Corporation (KAC). Companies submitted expressions of interest by 25 August (MEED 28:8:11).
“Whilst PrivComm is pleased with the interest received from a broad range of local and international parties, it has made a recommendation to the Council of Ministers to proceed with a restructuring plan prior to undertaking the privatisation process,” says a statement from PrivComm.
The Council of Ministers has approved the recommendation and will now proceed with an amendment to law 6 of 2008 to provide the legal framework for the restructuring and reformation of KAC before its privatisation.
State-run Kuwait Investment Authority will own 20 per cent of Kuwait Airways. The privatisation of the airline was initially due to be completed by March 2011. In August last year, Kuwait appointed the US Citigroup, the UK’s Ernst & Young and US aviation services firm Seabury to handle the privatisation process (MEED 12:8:10).