Kuwait Airways signs contract with Airbus for 25 new aircraft
Kuwait Airways has announced it has signed a contract with Airbus to buy 25 new aircraft and lease 12 other new planes.
In a statement the airline said: "The company will start to receive the new planes from the second quarter of 2014.”
Analyst Saj Ahmad commented: “Kuwait Airways is arguably the last major GCC airline investing capital for new airplanes - and quite frankly, they can't come soon enough.
“Even its neighbour and one time rival Iraq has managed to pluck Iraqi Airways out of obscurity and restart operations and expand its network - so by extension, Kuwait Airways should have little problem in overhauling its apparatus to become a more prominent and agile Arab airline once again.”
Ahmad added: “The key challenge for Kuwait Airways is double-edged. It has to tackle the Big Three Arab carriers and also has to compete against the nimble low cost airlines like flydubai, Air Arabia, flynas and Jazeera Airways - Kuwait Airways will have its work cut out, but from an operating cost perspective, it will have least have a modern fleet upon which it can be a big competitive threat in the long term if it plays its cards right.”