Kuwait Airways, the state-owned carrier which hasn’t made a profit in more than 30 years, reduced its losses by about half last year, Chairman Ali Al-Dukhan said. The 2022 fiscal year was “one of the most successful years for Kuwait Airways, due to achieving its desired objectives,” Al-Dukhan told the company’s annual general meeting. Losses are down to 55m dinars ($178.6m) compared to 107m dinars posted in 2019, he said, the last comparative fiscal year before the pandemic hit the industry. The airline, which plans to break even in fiscal 2024, recorded an 11% rise in passenger revenue last year to 289.1m dinars, flying 3.5m people. It added 10 new routes in 2022, Al-Dukhan said. The carrier last year restructured its order with Airbus, adding longer-distance single-aisle aircraft, while reducing a commitment to the largest jetliners as it adapted to post-Covid demand. The company hasn’t posted a profit since Iraq’s 1990 invasion of Kuwait.<br/>
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Kuwait Airways plans to lease eight Airbus passenger jets within 10 years, Chairman Ali Aldokhan said on Sunday. The state-owned carrier is examining offers from leasing companies, and the contract duration for the leased planes, all Airbus 321 neo aircraft, will be between eight and 10 years, Aldokhan told a news conference. The plan to lease eight planes is in addition to Kuwait Airways' multi-billion dollar deal with Airbus in 2022 to buy 31 planes, 18 of which it has already received. While airlines globally were hit hard by the COVID-19 pandemic, many Gulf carriers have seen a swift pickup in demand and are key players in their governments' drive to diversify their economies into sectors such as tourism. The cost of jet fuel for Kuwait Airways has increased 38% year-on-year since the beginning of 2023, Aldokhan said. Kuwait Airways is in negotiations with Kuwait Petroleum Corporation on a discount mechanism to reduce the airline's jet fuel costs, CEO Maen Razouqi told the same press conference.<br/>
Kazakhstan’s government has formally opened invitations to potential investors for the privatisation of regional operator Qazaq Air. Qazaq Air was set up by the government in 2015 and uses a fleet of five De Havilland Dash 8-400 turboprops. It is owned by the Kazakh national wealth fund Samruk-Kazyna. “Attracting a private investor is aimed at creating new opportunities for the development of the Kazakhstan air transportation market, including expanding the geography of Qazaq Air flights, increasing the fleet and introducing innovative solutions,” says the carrier. Samruk-Kazyna has issued a notification for the sale of 49-100% of Qazaq Air shares, through a two-stage tender process. The first stage involves a review of preliminary proposals and confirmation of qualification requirements. Qualified prospective bidders will be approved to participate in the second stage, which will cover submission of formal tender proposals from which the successful investor will be selected.The government has fixed a minimum price for the entire share capital of 10.2b tenge ($22m), and refers to a security deposit of 173.4m tenge. Initial applications must be submitted by 28 September and the results of the tender for the second stage will be determined on 15 December. The tender documentation says the investor must ensure preservation of the activity profile in civil aviation for at least five years, as well as the implementation of scheduled passenger routes for three years. At least two-thirds of the number of full-time personnel must also be retained for five years, and Samruk-Kazyna has set out a schedule for repayment of two 2019 loans granted to the airline.<br/>