As reported last week, the privatization of Kuwait Airways is inching closer, however analysts seem to have written off the deal before it has been launched. Aviation analysts claim that investors are unlikely to be attracted to the company because they offer investors too little control, and not enough return.
"The airline has been struggling for some time now," said John Strickland, the director of the airline analysts JLS Consulting. "It's unlikely to gather any interest from the other big players in the region unless it gives a good deal and more control in its functioning."
"From the airline's aspect, this may be seen as an opportunity to raise capital for aircraft replacement," said Peter Morris, the chief economist at the consultancy Ascend Aviation. "But I don't see how buying into a part ownership of a very specific national airline with issues will be of any interest to investors," he added.
Investors unlikely to be attracted to Kuwait Airways, say analysts
