Kuwait to delay privatization of national airways

The Kuwaiti government has decided to delay the privatization of the country\'s national flat carrier and would put forward a restructuring plan instead, a committee overseeing the privatization said Sunday. Kuwait Airways, established in 1954, has been locked in a prolonged privatization process since 2007, an effort by the Kuwaiti government to reverse hardship and cut consecutive losses in operation. The cabinet has approved the recommendation and would provide the legal framework for restructuring the airline prior to its privatization, the Privatization Committee of Kuwait Airways said in a statement published by the official KUNA news agency. The committee said the decision was in line with the successful steps taken by other regional and international airlines in their privatization and would provide long-term strategic benefits to the airline and the Gulf emirate\'s economy. According to a plan approved by Kuwait\'s parliament in 2008, the government would sell 40 percent of the airline to the public and 35 percent to a long-term investor. \"The delay in privatizing Kuwait Airways gives us the opportunity to address a number of operational and structural issues ahead of a future privatization program,\" said Motlaq Al- Sane, chairman of the committee. Kuwait Airways posted a loss in all but one of the past 21 years. It incurred a deficit of around 275 million U.S. dollars in the past fiscal year on high costs of maintenance and fuel. Kuwait also has Wataniya Airways and budget carrier Jazerra Airways.