Kuwait Airways seen facing last chance

Kuwait Airways' overhaul may be management's last chance to save it, as the drop in oil prices means the government cannot go on funding its losses at a time when it is struggling even to pay public sector salaries, industry experts say. Once a prominent symbol of Kuwait's prosperity, the airline is now under real pressure to turn a profit, the 61-year old flag carrier having lost money in each year bar one since Iraq's invasion of Kuwait in 1990. And to some the airline's plight is indicative of the wider challenges faced by one of the world's richest countries per head of population as it now struggles to live within its means as low oil prices cause the government to run a budget deficit. And a habit of relying on the state for jobs and cradle-to-grave welfare means Kuwait faces an uphill task in convincing citizens that the state urgently needs to reduce spending, speed up asset sales and encourage the private sector. "The government can't go on for very long continuing to fund the airline," said Kuwait economist Jassim Al Sadoun, head of the Al Shall consultancy. "With low oil prices, it might take them a year or two to realise they don't have enough funds, especially because of their involvement in regional conflict," he said, referring to Kuwait's involvement in Saudi-led operations in Yemen. Which means securing a lasting future for the airline is now a much more urgent challenge for the management, led by chairwoman and former CE Rasha al-Roumi.<br/>