Kuwait postpones airline privatisation talks indefinitely

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

The discussions regarding a privatisation of Kuwait Airways Corp have been indefinitely postponed by Kuwait's parliament.

MPs reportedly objected to a proposal from the government, saying that the draft does not meet expectations. The government has said that privatising the airline would make it more competitive and also help reduce its losses, Kuwait's Daily Star newspaper reported. According to the plan, the airline would be turned into a state-owned shareholding company from its current position as a state-run concern limited by bureaucracy.

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