Following the closure of its leasing business, Jazeera Airways shareholders have approved a board recommendation to cut the hybrid airline’s capital via a share buyback programme. Jazeera’s capital will be reduced from KD42 million ($139 million) to KD20 million.
“Today’s shareholder approval to adjust the company’s capital is the last step of the company’s successful strategic exit from the capital-intensive aircraft leasing business earlier in the year,” said Marwan Boodai, chairman of Jazeera Airways. “Going forward, our focus will be on the growth opportunities available in our home market within the passenger airline business, which generated over 80% of the company’s net profit last year. We believe that passenger airline business in Kuwait will continue to grow strong (sic) and we are well prepared to take advantage of this growth.”
The airline will settle all of its outstanding debts through the capital reduction process.