Identifier
Created
Classification
Origin
04KUWAIT4513
2004-12-27 13:36:00
CONFIDENTIAL
Embassy Kuwait
Cable title:  

FUTURE OF FALTERING KUWAIT AIRWAYS

Tags:  EAIR KPRV KU BEXP 
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This record is a partial extract of the original cable. The full text of the original cable is not available.

271336Z Dec 04
C O N F I D E N T I A L KUWAIT 004513 

SIPDIS

E.O. 12958: DECL: 12/27/2014
TAGS: EAIR KPRV KU BEPX
SUBJECT: FUTURE OF FALTERING KUWAIT AIRWAYS


Classified By: Ambassador Richard LeBaron for reasons 1.4 (B) and (D)

C O N F I D E N T I A L KUWAIT 004513

SIPDIS

E.O. 12958: DECL: 12/27/2014
TAGS: EAIR KPRV KU BEPX
SUBJECT: FUTURE OF FALTERING KUWAIT AIRWAYS


Classified By: Ambassador Richard LeBaron for reasons 1.4 (B) and (D)


1. (C) Ambassador met with Kuwaiti Minister of
Communications, Planning and State for Development of
Administrative Affairs Shaykh Ahmed Abdullah al-Ahmed
al-Sabah on December 27, 2004 and discussed the financial
situation of Kuwait Airways and the recent announcement of a
new airline opening in Kuwait. (NOTE: His Ministry also
supervises Kuwait Airways and Civil Aviation. END NOTE.)
Kuwait Airways is losing 20 million USD every year to
interest on outstanding debts, according to the Minister, and
straightening it out is going to be "a bumpy road." The
Minister outlined his priorities for the failing state-owned
airline: his first priority is to get its accounts
straightened out and approved by parliament. After that he
said that the plans are to restructure the airline into a
more market-orientated organization although it would still
be state-owned. He is using an international consulting firm
to help develop the restructuring plan. Finally, he would
like to eventually privatize Kuwait Airways.


2. (C) The Minister also mentioned that Kuwait Airways is
looking to update its fleet of airplanes. The Ambassador
informed the Minister that the CEO of Boeing is planning to
visit Kuwait and the Minister expressed interest in meeting
with him then. Currently only two of the 15 planes in use by
Kuwait Airways are Boeing planes; the remaining are Airbus.


3. (C) Jazeera Airways, the first privately owned airline in
Kuwait, was also discussed during the meeting. The Minister
acknowledged that the new airline, expected to start regional
flights in February 2005, would put pressure on Kuwait
Airways to be more competitive. (NOTE: The Boodai family, a
prominent Sunni family heavily involved in private business
in Kuwait, is the major shareholder of the
unfortunately-named Jazeera Airways. The company's president
is Marwan Boodai. END NOTE.)


********************************************* ***
Visit Embassy Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait

You can also access this site through the
State Department's Classified SIPRNET website
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LEBARON