Saturday, November 10, 2012

Kuwait Airways On The Right Track

Last week a decree was issued creating Kuwait Airways Company a shareholding company that will take over Kuwait Airways Corporation. The company is tasked with privatizing the airline after restructuring it.
The board has a three year term and will be chaired by the Minister of Communication who will also name the board members.

The Ministry of Finance is tasked to covering the losses incurred by Kuwait Airways Corporation and to provide end of service benefits to any employee who wishes to leave the company.

The decree goes a long way towards addressing issues that delayed earlier privatization efforts.

This is similar to the Royal Jordanian privatization methodology except Royal Jordanian had a financial dimension to resolve; that was addressed by the sale of non core functions. Kuwait Airways has a staff issue.
The Workers Union has been accusing management of not safeguarding workers right. These are issues that can be resolved. Gulf Air came to an agreement with its labor union over employee layoffs.

This is not an easy task, Royal Jordanian's privatization took almost two decades to happen for several reasons mainly geopolitical and financial.

It is a step in the right direction and shows a government resolve to tackle the issue in a structured and realistic manner.




No comments:

Post a Comment

Labels

1 Goal 2010 2012 2013 9/11 AA Abu Dhabi ADAC Air Arabia Air Canada Air India Airberlin aircraft airlines airports ambitions American Airlines Amman aviation AVOD AWST B707-300C B767 B777 B787 BA Bahrain Bahrain Air BangaloreAviation Boeing branding British Airways Business Aviation Cabin Crew Canada change chapter 11 CO Commercials communication community compliance contingency continuity Continuous Improvement cost effective creativity Culture curricula Customer Service Delta Detroit Metro DFW Doha DTW Dubai Dubai Air Show DWC efficiency emergency Emergency Response Emirates employees environment ET409 Etihad ETS EU FA FAA family Flight Attendants flight(s) Flightglobal flydubai GACA Galaxy Tablet GAMCO GCC globalisation GOL Greece Green Gulf Air Hala Hamburg happy health home Hopenhagen Human Resources IFE India Iran Iraq Iraqi Airways Jaffa Jazeera Airways Jet Airways Jordan Just Culture Kuwait Airways LA LCC leadership low cost maintenance management manpower MEA MEBAA MENA Michigan motivation MRO MROAM Oneworld Palestine passengers passion people Philadelphia planet earth Privatization professional QAIA Qantas Qatar Qatar Airways Quality Quick Service Restaurant Radio Repair Stations Risk road roots ROTANAJET Royal Jordanian Safety Sanctions. Sao Jose Dos campos SAT Saudi Arabia Saudi Arabian Airlines Security Sharjah Airport SimliFlying Simplicity SKYTEAM SMS social media Southern California Southwest Airlines Star Alliance Sudan Airways support target teachers Technology terrorism tolerance Toulouse tourism traffic Training transition travel TSA Turkey Twitter UA UAE UBM US Airways VIA Rail Violin Vision volcanic ash Wataniya Airways
 
Top Blogs
Powered By Invesp