Kuwait Airways to assess buyout bids

Kuwait_Airways

Kuwait Airways Corporation's privatisation committee — PrivComm — will assess expressions of interest (EOIs) made to purchase a 35 per cent stake in the carrier following the expiry of the August 25 deadline for submissions.

"The Privatisation Committee of Kuwait Airways (PrivComm) has confirmed the close of the initial Expression of Interest phase of the proposed privatisation programme," the company said in a statement.

It added that Privcomm will work closely with its advisers to assess the EOIs received to date. While the company did not divulge details on the number of companies that submitted EOIs, it said in the statement: "An update to the market will be provided in due course."

It added: "PrivComm remains committed to ensuring the best option for securing the future of the airline that serves the needs of the people of Kuwait and the national economy."

Kuwait Airways, which made a full-year net loss of US$556 million in 2010 and carried 2.62mn passengers, hasn't made profit since the 1990 Iraqi invasion. In January 2008, Kuwait's parliament decided to sell shares in the airline.

Kuwait Airways Corporation, however, said in May that it is confident of recovering all of US$1.2 billion from Iraqi Airways — following a 21-year chase — in compensation from Iraqi Airways Company (IAC) for the theft of 10 aircraft and spare parts seized by Iraq in the 1990 invasion of Kuwait

Established in 1954, the state-owned carrier currently boasts a fleet of 17 aircraft, and is the leading carrier in Kuwait.

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