The amendment of Kuwait Airways Corporation (KAC) Privatization Law has started as per the recommendation of some politicians to retain the airline’s status as a national carrier rather than privatizing it. According to reliable sources, the proposal is now in the hands of the Fatwa and Legislation Department which will put the final touches to pave way for its approval.
Sources disclosed that as per the proposal, the State will own 75 percent of KAC’s shares, 20 percent will be launched for IPO (Initial Public Offering) and five percent for the employees of the corporation. Sources affirmed the KAC Board of Directors has presented its views on the proposed amendments which, once implemented, will make KAC a national carrier completely owned by the government.
On the other hand, some supervisors have agreed that retaining the status of KAC as a national carrier is a step in the right direction, particularly after upgrading its fleet. They argued this is necessary for KAC to reclaim its previous share of the local market; hence, its privatization is no longer necessary. They added no one can buy the share of KAC after paying more than $5 billion for two deals with Airbus and Boeing, indicating it will be considered wastage of public funds in case the sale does not push through according to the value of the companies’ assets.
Meanwhile, three nominees for the position of deputy director general of Kuwait International Airport Affairs have been submitted to the minister of communications, reports Al-Qabas daily quoting sources from the Directorate General of Civil Aviation (DGCA). Sources clarified that according to the Amiri decree issued recently regarding the leadership positions in governmental bodies, the nominees should have specialized qualifications. Sources said the communications minister will submit the nominees to the Ministers Council within two weeks to select the best among them. Sources added the nominees include Director of the Administrative Affairs Department Essam Al- Zamel, Director of the Information System Department Sami Al- Halibi and Director of the Facilities Department Najat Al- Randi.