KUWAIT AIRWAYS PRIVATIZATION IN DOUBT

Although the Kuwaiti government has succeeded in convince the majority of Kuwait Airways’ 2,600-plus staff to retire, or take other government jobs, in order to cut its crippling wage bill, it may struggle to find a buyer for the 35% stake in the airline at the price it was hoping for. The government expects the post-privatised share capital of the airline to be around 220 million Kuwaiti Dinars – valuing the 35% stake at $282 million – but that was based on 2009 estimation and shares in airlines have fallen since then. Government restrictions will also reduce the bidding pool