Kuwait Airways Projects Major Losses in 2000-1
Kuwait Airways' fiscal projections for 2000-1 have been presented to parliament, and as has been the case in the past, the figures will be the subject of much scrutiny. Kuwait Airways Corp. (KAC) is forecasting a loss of KD 38.13 million (USD$124.2 million) for the 2000-1 year. Efforts to get "back into the black" have diminished because of the economic recession.
Financial figures project an income of KD 193.9 million in the year to begin July 1, with total expenditures accrued totaling KD 232.03 million. For the year ending this June, KD 220.39 million and KD 219.9 million respectively are recorded, Gulf Times reported.
"General recession in 2000-1 in Kuwait in the economic, construction and trade sectors is expected to continue," KAC officials announced. Despite an increase in global oil prices, the Kuwaiti economy continues to be baffled by economic stagnation. But the hike in oil prices may come as both a burden and a blessing, as KAC prepares to spend an extra KD3.82 million on fuel and oil in 2000-1, making its total annual oil outlays reach nearly KD 25 million.
Kuwait's national air carrier employs nearly 5,500 people. KAC's premises and much of its fleet was destroyed during the Iraqi invasion during the Gulf War. After rebuilding, Kuwait Airways fleet now comprises three A320-200s, three A310-300s, five A300-605Rs, four A340-300s and two Boeing B777s, bringing the fleet to 17 aircraft. Kuwait Airways aims to re-establish its network to reach more than 46 nations around the globe. (albawaba.com staff)
© 2000 Mena Report (www.menareport.com)