Puckinflight

Persian Gulf airlines are currently in a period of transition. The various governments in the region have over the past several years been looking to transition out of the state owned airline business. For the profitable airlines this isn’t a problem; however, for the marginal airlines this has been a huge problem. State governments despite the desire to end funding of these unprofitable airlines, have a strong interest in seeing the airline remain in business. There are two solutions to this problem. First, the state can get the airline profitable and then sell it, or they can retain an ownership stake in the airline and continue to pump money in. The Kuwaiti government according to the latest amendment to their privatization law is going to continue to pump money in to Kuwaiti Airways further disrupting the privatization plan.

Tags: Golden share, Governments, Kuwait Airways, Privatization