KUWAIT: Kuwait is studying plans by its airline to buy 25 Airbus jets, a source with knowledge of the matter said, in the most sweeping overhaul since part of its fleet was seized after Iraq invaded the Gulf state in 1990.
The proposal calls for state-owned Kuwait Airways to buy 25 new Airbus jets and to lease a further 13 to upgrade its fleet but needs government approval, the source said. It could be signed by the end of this month.
The move comes months after Kuwait was awarded $500m by Iraqi Airways for damage caused when former Iraqi President Saddam Hussein’s forces seized aircraft and parts, ending a two-decade row over compensation.
The Kuwaiti airline’s aircraft buying committee judged that Airbus made the most attractive offer in a tender process which included bids from Boeing and Bombardier, the source said.
The source declined to be named because the deal still needs government approval. In August 2007, Kuwait Airways cancelled an order for 19 passenger planes worth $3bn from local lessor Alafco after failing to get government approval.
Under the new proposal, Kuwait Airways would pay around KD850m ($2.98bn) for the 25 new planes. Reuters
