Kuwait's government has approved a new structure for the privatisation of Kuwait Airways under which the state will own 75 percent of the carrier, it said on Sunday, excluding potential investors such as Jazeera Airways. Under the new proposal, approved by Transport Minister Issa Al-Kandari, 20 percent of the airline's shares will be offered to Kuwaiti citizens, five percent to current and retired employees, and the government will retain the rest, a statement on Kuwait's news agency (KUNA) website said.
Parliament's Financial and Economic Committee will meet to vote on the approved proposal before it is finalised. Previous proposals put government's stake at 20 to 40 percent and allowed strategic investors to own up to 35 percent. Kuwait's parliament first approved a plan to privatise the loss-making Kuwait Airways Corp. (KAC) in 2008, but the process has been repeatedly held up. Privatisation was initially delayed as the company planned to first restructure the airline.