50 SKY SHADES - World aviation news

Jazeera Airways Eyes Long-Haul Venture

Download: Printable PDF Date: 01 Feb 2016 02:30 category:
Publisher:
Jazeera Airways Eyes Long-Haul Venture - Airlines publisher
Krista Kuznecova
Country: Kuwait Aircraft: Airplanes Airline: Jazeera Airways
Source: Reuters

Kuwaiti low-cost carrier Jazeera Airways could set up a long-haul service with a foreign partner as an alternative to buying a stake in national carrier Kuwait Airways.

Jazeera Chairman Marwan Boodai told Reuters news agency he would still prefer a stake in loss-making Kuwait Airways, but that he was preparing an alternative strategy.

"Plan 'B' is tying up with an international player to go long-haul. We're seriously considering this now," he said.

Kuwait Airways' privatisation was ratified in 2008, and both Jazeera and logistics firm Agility expressed an interest in buying a stake.

However, Kuwait Airways' weak finances and bureaucratic hurdles have delayed the process. The carrier is currently in the midst of a restructuring aimed at returning it to profit, a step required ahead of a sale.

Jazeera currently only has short-haul regional operations and buying into the national carrier would give it exposure to the long-haul market.

Privatisations are being explored with greater urgency in some Gulf countries as a way of boosting state finances hit by a slump in oil prices.

LONG-HAUL

Because of the delay, Jazeera is exploring possible routes for future long-haul operations. Once these are determined, Boodai said it could then identify possible international partners and seek a long-haul joint venture.

Last year, Jazeera paid off all of its debt in order to move ahead with investment plans. It has USD$105 million in cash on its books, Boodai said.

About 10.7 million passengers travelled through Kuwait Airport from June 2014 to June 2015, up 8 percent year on year, according to the country's civil aviation authority.

A large portion of the traffic is on long-haul routes, Boodai said.

"Jazeera covers about 5 million passengers in the region. There is another 6 million to tap into if we have strong operations," he said.

In order to focus on its passenger airline business, the carrier last year sold its capital-intensive aircraft leasing unit for USD$507 million.

Jazeera made a net profit of KWD14.5 million dinars in the first nine months of 2015, up 11.7 percent year on year.

Boodai expects to deliver a double-digit percentage rise in full-year profit, driven by an expanding Kuwaiti market and lower fuel costs.



Loading comments for Jazeera Airways Eyes Long-Haul Venture...


Recommended

Greetings on airBaltic 25th anniversary

To honour the 25th anniversary since the Latvian airline airBaltic launched commercial operations, the airline’s employees are sending positive greetings to everyone all over the...

First two H145s delivered to the Ecuadorian Air Force

Airbus Helicopters has delivered two H145s to the Ecuadorian Air Force, the first military customer in South America for this multi-purpose twin-engine helicopter. A total of six H145s will...

Adapting to the collapse of the aircraft parts logistics supply chain

Since the beginning of the COVID-19 pandemic, the number of daily flights across all sectors of the industry has significantly decreased and with that, like any other business in the industry, Jet Mai...

Iconic British Airways 747 ‘QUEEN OF THE SKIES’ to be preserved at Cotswold airport

Cotswold Airport will be the permanent home to an iconic British Airways 747 aircraft for locals and visitors to enjoy. The Boeing 747, registration G-CIVB, will be permanently retired at Cotswold...