Al-Fuqayan: Converting 'Kuwaitia' into a state-owned company enhances performance efficiency and provides flexibility

This was stated in an interview with KUNA on Saturday, coinciding with the issuance of Law-Decree No. 77 of 2026 regarding the conversion of Kuwait Airways Company into a wholly state-owned joint-stock company.

Al-Faqean said that this transformation supports the implementation of the company’s strategy by operating within a legal framework aligned with the provisions of the Companies Law, as well as enhancing governance in line with the state’s direction toward updating the legal system and strengthening institutional efficiency.

He added that this transformation consolidates a more sustainable institutional model for managing the company, providing it with better tools for long-term planning to help it execute its strategic plans more efficiently and achieve a balance between maintaining its role as a national carrier and continuing institutional and operational development in accordance with the requirements of the modern aviation sector.

He noted that this decree represents an important milestone in the journey of “Kuwait Airways,” reflecting the state’s commitment to developing the national carrier in line with best institutional and legislative practices, and enhancing the company’s ability to continue evolving in a sector witnessing rapid regional and international changes.

He pointed out that the next phase requires continuing to implement strategic plans, enhancing operational efficiency, improving service quality, and investing in human resources and modern technologies, thereby contributing to strengthening the company’s position and consolidating its role as a national carrier that keeps pace with Kuwait’s aspirations and its future vision in the air transport sector.

Regarding the granting of the company unrestricted powers to conduct its operations, Al-Faqean explained that this aims to provide the company with greater flexibility in managing its affairs and executing its operational and investment requirements within approved legal frameworks, helping it respond more efficiently to the needs of the air transport sector and supporting the implementation of its current and future projects.

He indicated that these powers also grant the company greater capacity to plan and execute projects according to its operational needs, while streamlining certain administrative procedures related to business execution, which supports faster completion and raises institutional performance efficiency.

He anticipated that these powers would contribute to enhancing operational efficiency by facilitating procedures related to business management, decision-making, and drawing up future plans, as they give the company greater ability to keep pace with operational changes and respond to market requirements more flexibly, while complying with governing regulations and laws.

He noted that aviation is one of the sectors that require speed in dealing with new operational and commercial developments, clarifying that enhancing administrative flexibility supports the company’s ability to execute its plans more efficiently and respond to opportunities and challenges more effectively.

He clarified that the unrestricted powers provide greater flexibility in managing the company’s affairs, which may support the implementation of future plans such as purchasing or leasing new aircraft or opening new destinations, as approved by the Board of Directors and executive management according to operational needs and economic studies, in line with the company’s strategy and market developments. He added that future expansions, whether in increasing the number of fleet aircraft or the network of destinations, will be subject to technical and economic studies and operational requirements, thereby achieving the best returns for the company and enhancing its competitiveness and sustainable growth.

Regarding the impact of converting the company into a wholly state-owned joint-stock company on reducing accumulated losses, Al-Faqean stated that loss reduction is linked to several operational, financial, and administrative factors, as well as external factors such as travel trends, fuel prices, and economic, regional, and global developments. He explained that this transformation provides an institutional and regulatory framework that supports improved efficiency and enhanced performance, which may positively affect financial results in the medium and long term, alongside the plans and procedures the company is implementing to achieve its strategic objectives.

He noted that this transformation is expected to support the company’s activities by providing a more flexible regulatory environment and enabling it to conduct its operations within a modern institutional framework, thereby helping it keep pace with the rapid changes in the air transport sector. He emphasized that institutional transformations do not yield immediate results but rather create a conducive environment for making more efficient decisions and implementing development initiatives more effectively, thereby supporting sustained growth and improving operational and administrative performance in the medium and long term.

He pointed out that a key advantage of the company’s transformation is that it will operate under a modern legal framework aligned with the Companies Law, enabling it to keep pace with legislative and economic developments, which will bolster its competitiveness in the air transport sector. He added that this institutional model enhances the clarity of roles and responsibilities within the company and aligns with best management practices adopted by major corporations, thereby supporting institutional performance sustainability and enhancing resource management efficiency.

Al-Faqean stated that the state’s continued full ownership of Kuwait Airways confirms the preservation of its role as a national carrier, while developing its institutional business model to serve the public interest. He noted that the decree responds to developments in the air transport sector and intensifying regional competition, providing a legal and regulatory framework that supports the company in continuing to implement its development plans.