However the airline believes it can auction a 35% stake to foreign and local investors and 40% sold to Kuwaiti citizens (click here for full story from Arabian Aerospace On Line News Service)
For some reason the government believes that people will buy into an entity that has not made money in the last decade or so and have blamed the Iraq invasion in 1990 for all its woes. Furthermore, Kuwait Airways has been investigated since March 2010 for allegations of corruption.
A privatised Kuwait Airways will enter a market place that is very competitive supposedly without its government subsidies and losses. There has been a few failed attempts to restructure the airline and renew the fleet.
Kuwait Airways has lost market share to Jazeera and Wataniya in the last few years and will lose even more without the government support.
Kuwait Airways requires an investment in a major restructuring and fleet renewal that will transform it into a dynamic profit making organisation
Only time will tell how the privatization effort will go and how it will pans out.
I wish my friends in Kuwait Airways all the best.
