Kuwait Airways turns into fully state-owned company

KUWAIT CITY, Aug 8: Kuwait Airways Chairman Abdulmohsen Al-Fagaan said its transformation into a fully state-owned shareholding company strengthens its strategy within the Companies Law framework. The remarks came in a KUNA interview on Saturday following the issuance of Decree Law No. 77 of 2026 transforming Kuwait Airways into a fully state-owned shareholding company.

Al-Fagaan said the decree strengthens Kuwait Airways’ governance, long-term planning and development, reflecting the State’s commitment to modernizing the national carrier amid rapid aviation-sector changes. He added the next phase will focus on strategic plans, operational efficiency, service quality, human capital and technology to strengthen Kuwait Airways’ role as the national carrier. He said the unrestricted powers granted to the company will enhance Kuwait Airways’ operational and administrative flexibility, streamline procedures and decision-making, accelerate projects, and improve its response to market changes, supporting future plans including acquiring or leasing new aircraft and launching new destinations within legal frameworks. Al-Fagaan explained greater administrative flexibility will help Kuwait Airways respond quickly to aviation sector developments and implement plans more efficiently.

He added that any future expansion, whether through increasing the size of the fleet or expanding the route network, will be subject to technical and economic studies and operational needs to ensure the best return for the company while enhancing its competitiveness and sustainable growth. Regarding the contribution of the company’s transformation into a wholly state-owned shareholding company to reducing accumulated losses, Al- Fagaan said that reducing losses depends on several operational, financial and administrative factors, in addition to external factors such as travel demand, fuel prices, and regional, global and economic developments. He stressed that institutional transformation takes time but enables more efficient decisions, effective development initiatives, sustainable growth, and improved performance.

Al-Fagaan said the transformation will provide the company with a modern legal framework aligned with the Companies Law, enabling it to adapt to legislative and economic developments and strengthen its competitiveness in the aviation sector. He added that the institutional model clarifies roles and responsibilities, aligns with best corporate practices, supports sustainable performance, and improves resource management efficiency.

The decree responds to developments in the aviation sector and growing regional competition, providing a legal and regulatory framework to support the company’s development plans, he explained. He said that becoming a leading global airline requires more than legal transformation, including fleet modernization, better services and efficiency, strategic network expansion, investment in national talent, and digital transformation. He stressed that competitiveness in the aviation sector is measured not only by fleet size, but also by the quality of passenger experience, operational efficiency, and the ability to adapt to global developments, highly appreciating the continuous support of the political leadership to the national carrier. (KUNA)