Kuwait Airways set to secure government funding
Kuwait Airways has been given the green light to access KWD600 million dinars (USD1.96 billion) in capital funding from the Kuwaiti General Reserve Fund (KGRF), report ch-aviation.
The disbursement was approved by the country's Financial and Economic Affairs Committee (FEAC) during a hearing on Sunday, January 22.
Following an earlier rejection in December, FEAC Rapporteur MP Safa Al-Hashem said that the approval was unanimous with committee members arguing that the funding was "a positive step" in driving change at the state-owned airline.
Al Hashem pointed out that of the six business scenarios presented to the committee, none had succeeded in convincing her of the airline's path to success. However, given the seriousness of Kuwait Airways' financial state, the motion to approve was passed.
"Unfortunately, Kuwait Airways suffers from many problems, including the inability to negotiate with banks and a lack of proper management needed to extricate the carrier from its current bottleneck without borrowing money," she said.