Chairman of struggling Kuwait Airways steps down
Chairman of Kuwait Airways (KAC) Ahmad Al-Zaben has offered his resignation, citing lack of government financial support. The carrier has recorded poor performance since it re-launched operations after the 1991 Iraqi invasion.
In his resignation letter published by Al-Qabas, Zaben accused Kuwait's Finance Minister Mahmoud Al-Nouri of withholding the "necessary support to overcome the difficulties and obstacles" affecting KAC.
Zaben also accused the minister of "orchestrating" problems with the airline's board of directors and "distorting my image…to use me as a scapegoat" for KAC's troubles.
Last week, Nouri warned KAC's board of directors that members would be fired if a reform plan was not put into place. The airline has accumulated $1.8 billion in losses over the past 11 years.
KAC was founded privately in 1954, but over a period of time was bought out entirely by the Kuwaiti government. Zaben is the second chairman to resign since 1999, when former head of the airline Ahmad al-Mishari quit over allegations of mismanagement. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
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