Kuwait Airways

History

The carrier traces its history back to 1953, when Kuwait National Airways was formed by a group of Kuwaiti businessmen; initially, the government took a 50% interest. That year, a five-year management contract was signed with British International Airlines (BIA), a BOAC subsidiary in Kuwait that operated charter flights and provided maintenance services. Two Dakotas were bought, and operations started on 16 March 1954. The carrier transported 8,966 passengers in its first year of operations. In July 1955, the name Kuwait Airways was adopted. In May 1958, a new contract for management and operation was signed, directly with BOAC this time. BIA was taken over by Kuwait Airways in April 1959.

On 8 August 1962, Kuwait Airways became the first foreign customer to order the Trident when two aircraft of the type were acquired, and an option for a third was taken. The deal was valued at £5.5 million, and also included a Comet 4C. At the same time, the carrier also had a £3 million order in place for three BAC One-Elevens, with an option for a fourth. The airline took delivery of the first Comet of its own in January 1963, but Comet operations had started in the previous year with an aircraft on lease from MEA. In August 1963, a second Comet was ordered. The delivery of this second airframe established an unofficial record in early 1964 when it flew between London and Kuwait, a distance of 2888 mi, at 461 mph on average. On 1 June 1963, the government increased its participation in the airline to 100%. In March 1964, the carrier added its first European destination to the route network when flights to London were inaugurated using Comet equipment; from that time, services between London and some points in the Middle East, including Abadan, Bahrain, Beirut, Dhahran, Doha and Kuwait, started being operated in a pool agreement between the carrier and BOAC and MEA. A month later, the airline absorbed Trans Arabia Airways.

In April 1965, the route network had expanded to include Abadan, Baghdad, Bahrain, Beirut, Bombay, Cairo, Damascus, Doha, Frankfurt, Geneva, Jerusalem, Karachi, London, Paris and Tehran. At this time, the fleet comprised two Comet 4Cs, three DC-6Bs, two Twin Pioneers and three Viscount 700s; the carrier had two Trident 1Es and three One-Elevens pending delivery. The first Trident was handed over by the aircraft manufacturer in March 1966, and the second followed in the same year. In the interim, a third aircraft of the type was ordered. On the other hand, the One-Elevens were never delivered: in January 1966, the carrier stated that the simultaneous introduction of both types of aircraft was not possible due to a tightened budget, and postponed their delivery; it was informed late that year that the airline would not take them. Three Boeing 707-320Cs were ordered in November 1967. The carrier made its first profit ever in 1968, with a net income of £910,000.

During 1972, Kuwait Airways' consecutive profitable year, the airline had a net profit of £2.9 million. By May 1973, the fleet had reduced to five Boeing 707-320C aircraft. That year, flights to Colombo were launched. In March 1975, Faisal Saud Al-Fulaij, who employed 1,800, was the corporation's chairman. In a deal worth million, two additional ex-Pan American Boeing 707-320Cs were subsequently purchased that year, with the first one entering the fleet in . The carrier ordered its first Boeing 737 that year, slated for delivery in February 1976. Kuwait Airways became the Boeing 727's worldwide customer in 1979 when it ordered three of these aircraft for delivery in late 1980 and early 1981.

By July 1980, chairmanship was held by Ghassan Al-Nissef, the number of employees had grown to 5,400 and the fleet comprised eight Boeing 707-320Cs, one Boeing 737-200, three Boeing 747-200Bs and one JetStar; three Boeing 727-200s were pending delivery. In mid 1980, six Airbus A310-200s were ordered to replace the Boeing 707s on routes to Asia, Europe and the Middle East, with deliveries starting in 1983; five more A310 aircraft were added to the order late that year.

After India's air market was deregulated in 1992, Kuwait Airways and Gulf Air participated in the formation of Jet Airways, each holding a 20% equity stake, with a total investment estimated at million. Following the enactment of a law that banned the investment of foreign carriers in domestic Indian operators, both airlines had to divest their shareholding in the Indian company. Kuwait Airways' 20% stake in Jet Airways was sold to the chairman Naresh Goyal for million.

In July 1996, the carrier modified a previous order that included Boeing 747 aircraft, and placed an order worth million for two Boeing 777-200s, with purchase rights for another aircraft of the type. The operation made Kuwait Airways the customer of the type worldwide. The airframer handed over the first Boeing 777-200 in early 1998. In December 1998, a code-share agreement was signed with Trans World Airlines to begin in the spring of 1999.

In October 2007, the new CEO pledged that the airline should be privatised to compete efficiently against other airlines. He says that the airline will encounter difficulty in advancing, especially in fleet renewal, without privatisation.

Flights to Iraq were resumed in November 2013; Kuwait Airways had discontinued services to the country in 1990 following the invasion of Kuwait. After a 17-year hiatus, the carrier resumed flying to Munich in July 2015. Also in July 2015, the airline restarted flights to Istanbul-Atatürk; the city had not been served for three years. Bangalore was added to the carrier network in October 2015.

Airline's relationship with Israeli passengers

Kuwait Airways was accused of discriminating against holders of Israeli passports, for refusing in 2013 and 2014 to sell tickets from New York to London to people holding Israeli passports. In response, Senator Richard Blumenthal, along with five other senators, wrote a letter to Transportation Secretary Anthony Foxx in May 2015 urging him to investigate the allegations. In October 2015, at the conclusion of an investigation, the Department of Transportation issued Kuwait Airways an order to "cease and desist from refusing to transport Israeli citizens between the U.S. and any third country where they are allowed to disembark". In the letter, the DOT also accused Kuwait Airways of following the Arab League boycott of Israel. Additionally, New York City Councilmember Rory Lancman asked the Port Authority of New York and New Jersey, which operates JFK Airport, to "terminate the airline's lease if it doesn't immediately change its policy." For its part, the airline said that it complies with Kuwaiti Law which prohibits the company from entering "into an agreement, personally or indirectly, with entities or persons residing in Israel, or with Israeli citizenship." The airline also petitioned the Federal Court of Appeals for the District of Columbia to review the dispute.

The matter was settled on 15 December 2015, when Kuwait Airways informed the United States Department of Transportation that it would eliminate service between JFK and London Heathrow, with The Daily Telegraph reporting that tickets for the route were no longer being sold effective the following week.

A similar lawsuit was filed in 2017 by the Lawfare Project against the airline for refusing to allow Israelis on a flight from Frankfurt to Bangkok with a layover in Kuwait. Unlike the case of the New York to London route, in this lawsuit, the German court upheld the right of the airline to refuse passengers with Israeli passports to layover in Kuwait.

Corporate affairs and identity

Ownership

Kuwait Airways is wholly owned by the government of Kuwait, .

Privatisation plans

Privatisation started being considered in the mid 1990s, in a period that followed the Gulf War when the carrier experienced a heavy loss on its assets. The company was turned into a corporation in 2004. A draft decree for its privatisation was approved by the government on 21 July 2008. Plans were to sell up to 35% of the stake to a long-term investor and another 40% allotted to the public, whereas the government would hold the remaining 25%. These plans also contemplated the exclusion of domestic carrier competitors, such as Jazeera Airways, as potential bidders. Furthermore, the government also committed to keeping the workforce invariant for at least years and those who were not to be retained would be offered the opportunity to be transferred to other government dependencies without altering their salaries and holding similar working conditions.

In 2011, the privatisation committee valued the carrier at million, following advice by the Citigroup, Ernst & Young and Seabury. The process was expected to be concluded by March 2011. However, in that year, the committee recommended the airline to go through a reorganisation process before continuing with the privatisation programme, something that was approved by Kuwait Council of Ministers. The privatisation draft was amended and the government signed a contract with the International Air Transport Association for the provision of consultation expertise. The law for the privatisation of Kuwait Airways Corporation was passed in January 2013.

Key people

, Abdulmohsen Salem Alfagaan holds the position as chairman.

Headquarters

The Kuwait Airways headquarters is located on the grounds of Kuwait International Airport in Al Farwaniyah Governorate, Kuwait. The 42000 sqm head office was built for 15.8 million Kuwaiti dinars (US $ 53.6 million). Ahmadiah Contracting & Trading Co. served as the main contractor. The headquarter was constructed from 1992 to 1996. The construction of the head office was the first time that structural glazing for curtain walls was used in the State of Kuwait. The previous headquarters was on the grounds of the airport.

Subsidiaries and alliances

Kuwait Airways has several subsidiaries that are going through a similar privatization process as KAC.

• Kuwait Aviation Services Co. (KASCO)
• Automated Systems Co. (ASC, شركة الأنظمـــــة الآلية,الأنظمة) GDS provider since 1989
• ALAFCO

Kuwait Airways also went into alliances with several airlines to keep up with demand and to continue its operations during the 1990 war.

• Shorouk Air (ceased operations in 2003)
• Jet Airways (India, temporarily suspended)
• Trans World Airlines (began 1 December 1999 with codeshare between JFK and Chicago to Kuwait City)

Livery

The airline revamped its livery on 23 October 2016, updating the stylised bird logo.

Destinations

Main article: List of Kuwait Airways destinations

Kuwait Airways is based at Kuwait International Airport; the airline flies 65 routes that serve 63 destinations, .

Codeshare agreements

Kuwait Airways has codeshare agreements with the following airlines:

• Aegean Airlines
• Air Europa
• Etihad Airways
• Ethiopian Airlines
• ITA Airways
• Middle East Airlines
• Oman Air
• Saudia
• SriLankan Airlines
• Thai Airways International
• Turkish Airlines

Interline agreements

Kuwait Airways has interline agreements with the following airlines:

• Air Canada
• Air China
• Air Europa
• Air India
• American Airlines
• APG Airlines
• Asiana Airlines
• Bangkok Airways
• Biman Bangladesh Airlines
• Cathay Pacific
• China Airlines
• Deutsche Bahn (railway)
• EgyptAir
• Etihad Airways
• Ethiopian Airlines
• Gulf Air
• Emirates
• ITA Airways
• Kenya Airways
• Korean Air
• LOT Polish Airlines
• Lufthansa
• Malaysia Airlines
• Middle East Airlines
• Nepal Airlines
• Oman Air
• Qatar Airways
• Royal Air Maroc
• Saudia
• Singapore Airlines
• SriLankan Airlines
• Thai Airways International
• Tunisair
• Turkish Airlines
• United Airlines

Fleet

Current fleet

, the Kuwait Airways fleet includes the following aircraft:

Government aircraft

Kuwait Airways operates aircraft for official State business. The fleet has a Kuwait Airways inspired livery with State of Kuwait titles, and is composed of one Airbus A300-600, one A310-300, one A319, one A320, two A340-500 and one Boeing 747-8BBJ.

Former fleet

Fleet development

In October 2013, Kuwait Airways had one of the oldest aircraft fleets in the Middle East, with an average age of 20 years. That month, the carrier opened its maintenance facilities to the press for them to check that the fleet was kept in condition, amid rumours of deficiencies in their maintenance. In the same year, the carrier signed a memorandum of understanding with Airbus for the acquisition of A320neos and A350-900s. These aircraft would be handed over between 2019 and 2022. For the interim period, the deal includes the lease of seven A320s and five A330-200s from the aircraft manufacturer; deliveries would start in late 2014. In a deal valued at billion, the order including A350-900s and A320neos was confirmed in February 2014. Kuwait Airways' intentions to purchase Boeing 777-300ERs were informed in November 2014. The order was firmed up a month later for billion with deliveries expected to start in November 2016. Also in December 2014, Kuwait Airways took delivery of its first sharkleted Airbus A320 as part of the airline fleet renewal programme. , Kuwait Airways received four leased aircraft of the type, marking the first fleet upgrade in 17 years. The carrier became a new customer for the Airbus A330 when it received the first aircraft of the type in June 2015.

Following the airline's rebranding initiative in October 2016, Kuwait Airways received its first Boeing 777-300ER in December 2016, marking the arrival of the airline's first fully owned new aircraft in nearly twenty years. Introduced in 1995, the Airbus A340-300 was retired from service by the airline in 2017. In October 2018, Kuwait Airways amended a pre-existing commitment with Airbus for 10 A350-900s by reducing it to five of these aircraft and ordered eight Airbus A330-800s, which were scheduled to be delivered from March 2019. The first two Airbus A330-800s were handed over to the airline by the aircraft manufacturer in October 2020.

In August 2019, Kuwait Airways Chairman Yousef A. M. J. Alsaqer stated that the airline plans to spend $2.5 billion on new aircraft due to be delivered by 2026.

Awards

Kuwait Airways was named the World's Most Improved Airline for 2023 by SkyTrax.

Services

Kuwait Airways offers Royal Class and First Class passengers the option to check-in at the comfort of their home in where a limousine and an airline crew member will check-in the passengers, collect the luggage, and issue boarding passes at home. A car service to drive passengers to the airport is also provided upon request. This service is only offered while outbound from Kuwait International Airport. Kuwait Airways is one of the few airlines which does not serve alcoholic drinks on its flights.

Incidents and accidents

Kuwait Airways Flight 032

On 30 June 1966, Kuwait Airways Flight KU32, a Hawker Siddeley Trident 1C, was operating a scheduled international flight from Beirut, Lebanon, to Kuwait City. The flight proceeded uneventfully until the descent phase. At 20:28 GMT, the aircraft was cleared to descend from FL300 to FL95 near the DY NDB, maintaining this altitude until passing the beacon at 20:39 GMT. The pilot-in-command elected to conduct a visual approach, and the crew reported sighting the airport’s rotating beacon and lights.

During the approach to Runway 33R, the aircraft was positioned 6 miles from the airport at 2,300 feet with an airspeed of 178 knots. The autopilot remained engaged, and the co-pilot was occupied with landing checks. The aircraft’s intended approach speed was 154 knots with a 700 ft/min descent rate, but it continued descending at 1,500 ft/min. At 20:46 GMT, the aircraft impacted terrain approximately 4 km short of the runway threshold, slightly left of the centerline, at an elevation of 185 feet.

The accident resulted from an unstable approach rate and failure to follow company regulations. The corrective action of calling for 10,500 rpm was insufficient to regain level flight, and a delayed power request was ineffective. The pilot-in-command did not follow approach procedures, with landing checks incomplete and an incorrect altimeter setting set during the incident, There were 72 passengers and 11 crew members on board with 0 deaths in the incident.

Kuwait Airways Flight 422

On 5 April 1988, Kuwait Airways Flight 422, a Boeing 747-200 registered as 9K-ADB, departed from Bangkok en route to Kuwait City with 97 passengers and 15 crew members, including three members of the Kuwaiti royal family. Approximately three hours into the flight, over the Arabian Sea, the aircraft was hijacked by several Lebanese militants armed with machine guns and hand grenades. The hijackers directed the crew to fly to Mashhad, Iran, where they demanded the release of 17 Lebanese Shi'ite prisoners held in Kuwait for involvement in the 1983 bombings.

During the standoff in Mashhad, 25 hostages were released, including a male passenger with a medical condition and 24 female passengers. Negotiations stalled, leading the hijackers to force the aircraft to depart. The plane asked for landing permission in Beirut and Damascus but was denied by both. After seven hours, it landed in Larnaca, Cyprus, where two Kuwaiti passengers were executed, and their bodies were left on the tarmac. The ordeal continued as the aircraft flew to Algiers, Algeria, where, after a total of 16 days, the remaining hostages were released, and the hijackers, who were first in custody of the Algerian authorities, but after released and taken to an unknown location, they disappeared, evading capture and failing in their mission of freeing the prisoners in Kuwait.

Kuwait Airways during the Iraqi Invasion of Kuwait

Kuwait Airways suffered blows during the Iraqi invasion of Kuwait, at least 15 aircraft were seized by Iraq and taken to be used by Iraqi Airways. The Revolutionary Command Council decided that the Kuwait Airways company would be dissolved and all it's property would be transported to the Iraqi Airways Company. This made Kuwait Airways file two legal actions against Iraqi Airways, these legal actions would take almost 22 years to end and were only settled in 2017. An A310-300 and A300 were seized by Iraqi forces, repainted in the Iraqi Airways livery, and given new registrations by the Iraqi Directorate of Air Safety. Iraqi Airways started to prep the 2 planes for commercial services by regularly maintaining them. In July and August of 1992, Iran returned six Toulouse-built jets to Kuwait Airways after Kuwait paid them $20 million for maintenance and storage. A pair of Tupolev Tu-124Vs, both G-IIIs, and one of the two BAe.125s were destroyed by coalition airstrikes during Operation Desert Storm. These planes ended up being written-off. Additionally, there was a Boeing 727 that was being used by Iraqi Airways before being ferried to Oman and later, returned to Kuwait after the war.

After the war Kuwait Airways sought to seek compensation for the lost planes, at first, Kuwait was seeking $1.2 billion. Iraq and Kuwait ended up settling on a deal that would see Iraq pay Kuwait $500 million. $300 million in cash and $200 million in a Kuwaiti-Iraqi airline venture.

Notes

References

https://www.reuters.com/article/us-kuwaitairways-privatise-idUSTRE79T18O20111030

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