Wataniya Airways based in Kuwait and launched in 2009, has halted all operations due to heavy losses and deteriorating security in the region they announced yesterday. “The board has decided to cease all Wataniya Airways operations with the return of its last scheduled flight to Kuwait tonight, March 16, 2011,” said the board of directors in a statement. It said the move was caused by “the current financial situation of the company and the lack of fair trade requirements in the local market, as well as the difficult political and security situation in the region.” The decision was taken during a board of directors meeting. “The board has decided to call a meeting of the company’s shareholders as soon as possible to discuss the future course of the company,” it said. The company, the first privately owned premium carrier in Kuwait, incurred a loss of $37.8 million in 2009 and $5.4 million in 2008. It has not announced financial results for 2010. The company was already forced to suspend operations to several destinations in the Middle East due to political unrest.
The loss of this airline comes as government owned Kuwait Airways paves the way for privatisation. You have to wonder if an announcement is imminent regarding the delay of plans to privatise Kuwait Airways given the continuing spread of political unrest in the Middle East and the markets globally which to be frank, are in a state of flux over Japan. There could yet still be a financial meltdown this week.
LUFTHANSA OPTS FOR A320 & A321NEOS ALONG WITH THE 777
As mentioned here and in Airline Economics last month, Lufthansa has ordered the A320neo. Lufthansa yesterday approved orders for a total of 35 aircraft, 25 Airbus A320neos, five A321neos and five Boeing 777 freighters.
“We salute Lufthansa’s decision for sustainable growth with our eco-efficient A320neo aircraft, which will fit seamlessly into its Airbus A320 fleet,” said John Leahy, Airbus Chief Operating Officer, Customers. “Since its launch in December last year, the ‘neo’ has taken the market by storm and has already attracted more than 330 commitments – with more to come. This represents the fastest rate of sales for any commercial aircraft ever.”
Today the Lufthansa Group is Airbus’ biggest operator worldwide with around 339 Airbus aircraft currently in service.
Lufthansa said it will announce an engine selection on the A320neos at a later date. The 777Fs are powered by GE90s. Lufthansa said the total value of the orders is around $4 billion based on list prices. The 25 A230neo family aircraft will be used on European routes. Deliveries are due to start in 2016. The 777Fs are scheduled to start delivering in 2013.
You have to admit, we called this Lufthansa A320neo order well over a month ago both here and in our industry journal. Get well ahead of the curve and subscribe to the industry journal Airline Economics and receive the issue up to three weeks before everyone else and be ahead of the news. In issue one we confirmed three orders well before they were announced including this Lufthansa A320neo family order and even confirmed an engine split on one other order before it was placed.