Sunday, August 12, 2012

Kuwait Airways, Privatization At Last ........ Maybe

Since the A300-600 diversion to Meddinah on July 4th due to the loss of cabin pressure due to an engine malfunction and things were deteriorating. The government forced the airline to ground three (3) of the five (5) A300-600 for Inspection. An outcry about how unsafe the ageing fleet is has prompted an attorney to file  a lawsuit on July 9th to ground all flights and appoint a team of experts to examine the fleet (Click for full story). Of course, a well maintained ageing fleet is not necessarily unsafe or unworthy it is just more expensive. Several airlines operate older aircraft with no problems.

Kuwait Airways today, 12th of August 2012 accused the Parliament of obstructing all attempts of fleet renewal in 2005 and 2007 (Click for full story)

The Kuwaiti Cabinet is expected to issue a decree, after the Holy Month of Ramadan, to privatise the airline by transferring it to a company under the Public Authority For Investment and the formation of a new board.  The airline is expected to lease a few aircraft in the interim (Click for full story) to alleviate its safety issues.

The issue of workers rights has been and still is a sticking point, the Workers Union has been accusing management of not safeguarding workers rights (Click for full story).

Kuwait Airways is facing very tough times, and the government may decide to assume all the airline's debt in order to lure investors. However, issues of fleet renewal and workers rights under the new company need to be resolved and that is no easy task.

The coming few weeks should be very exciting and eventful.

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