Kuwait Times

Published Date: August 31, 2007
By Ahmad Al-Khaled, Staff writer

A growing chorus of complaints against state-run Kuwait Airways Corporation has raised doubts about the airline's future as a public enterprise. A parliamentary refusal of a KAC plan to replace the airline's aging fleet has trigged a debate on the overall trustworthiness of one of the country's oldest companies.

Flying Kuwait Airways was once a matter of national pride. Now it's a troublesome last resort for many Kuwaitis. While expatriates continue to fly KAC for their direct routes and moderate price, Kuwaitis are demanding higher levels of service and affiance and some are even calling for the profit-losing KAC to be privatized.

Founded in 1954, Kuwait Airways has come under the spotlight again Tuesday after it cancelled a $3 billion deal to buy 12 787 Dreamliners and 7 single aisle A320s from the Kuwait Finance House-owned local leasing company, Alafco. KAC cancelled the order after parliament refused to approve the deal.

In response, KAC officials have started direct talks with Seattle-based aircraft giant Boeing. A direct deal between the two could potentially save the state an extra 10 and 15 percent it would have paid middleman Alafco. Delivery of the aircraft, however, would be delayed.

KAC slighted parliament when it announced the deal to purchase the planes before seeking parliamentary approval, which is required on such an order," said Faisal Bassem.

Parliament's rejection has embittered some at KAC. On Wednesday KAC board member Nasser Al-Mari resigned, citing the "lack of government vision" in running the airline. He said politics in airline concerns contributed to his decision. KAC has run in the red 16 out of the last 17 years. Between 1997 and 2004 the struggling state owned enterprise lost $700 million.

Currently subsidized by the state, more and more support by both citizens and politicians are growing for plans to privatize the airline. The National Assembly is set to vote on whether to privatize the company in an October session.

KAC is a losing company. It needs to be run by a company rather than the state, which is sinking it," said Nawaf Kalil. In another move that will alienate a customer base already fed up with delayed flights, poor service and complaints of rodents on board, KAC recently announced plans to raise its fares. Flights to the Gulf and Middle East on a one way ticket are set to go up by KD 10 with an added KD 20 for a round trip. On destinations outside the region, one way ticket prices will rise KD 20 and round
trips will increase by KD 40. The company also announced they are set to increase prices an additional 2 percent across the board in January 2008.

With all the trouble with parliament and the new plane deal cancelled along with the fact that the company keeps losing money, I no longer feel obligated to book my family on our state airline. If it was only run as a good company should be then I would continue but they have ruined it," said Ahmad Mazen. "I am also disturbed by the parliament and KAC not working together for the sake of the state, their lack of good care has caused trouble for the airline," complained Jassem Issa.

Patriotism no longer trumps price or service matters for many Kuwaitis traveling abroad. "Every time we travel on Kuwait Airways we suffer from delays or some sort of difficulty. I just want to get to my destination on time and they cannot even promise that anymore. So why should we use them?" asks Um Talal. "With us it is not the price that matters. Our family wants good service, which means timing matters. And we are willing to pay for it. But not on Kuwait Airways any longer.