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KUWAIT: Kuwait Airways Corporation (KAC) lost a total of KD 55 million last year, according to its chairman and Managing Director Hamad Al-Falah.
"The main reason behind the losses is the incredible increase in airplane fuel prices during the second half of 2009," he explained, speaking during the airline's launch of its new food menu at the KAC headquarters yesterday. "The registered price in the budget for the 2009/2010 financial year was $92 per barrel, but this increased to $129 per barrel by the end of 2009. This led to a KD 6 million loss. Fierce competition in airline ticket costs also played a part in KAC's losses for the year, said Al-Falah. "The increased supply and competitive prices of airline tickets caused an additional KD 19 million in losses, although we achieved an increase of 92 million in the number of passengers compared to 2008," he explained. The airline chief also revealed that KAC is to rent an extra Airbus 330 aircraft to cope with the higher demand during the summer season beginning in July. "This decision has been made to contend with the shortage of aircraft during the summer season," he explained. "We sent the charter offers to 88 companies worldwide and the conditions applied to seven of those. We also recently refurbished six planes at a cost of KD 11 million. The corporation is also willing to refurbish more aircraft to enable more flights during the summer season. The corporation has also faced other challenges, with 80 technical staff, almost half its technical workforce, recently leaving to work for other airlines in the region, leaving the airline with a potentially problematic staff shortage. "These employees made up 40 percent of KAC's trained staff," Al-Falah said. "This shortage, although it's being remedied, has caused delays with departures. Al-Falah pointed out, however, that despite the challenges the airline has faced it is performing well. "If we compare the KAC flight delays to those of other airlines, they're 96 percent less than those airlines," he said, adding, "The main reason for the delays is KAC's care for passengers' safety and security. KAC will increase the number of its flights throughout the summer season, the airline chief added. "There will be 20 and 22 additional flights to Lebanon per week, starting from July until the end of August, 29 additional weekly flights to Damascus between July and the end of September, and 95 additional weekly flights to Cairo," Al-Falah revealed. Another speaker at yesterday's event, Khalid Al-Duwaisan, the Chairman of the Kuwait Aviation Services Company (KASCO) revealed that the firm currently prepares between 25,000 and 26,000 in-flight meals daily for around 22 international airlines, including KAC. We prepare the meals in our central kitchen in the Daij area," Al-Duwaisan explained. "In addition, we also prepare meals for unscheduled flights, such as the American Army or charter flights. The number of meals increases during the summer season, reaching about 29,000 meals per day as a result of the increase in daily flights. The company head also revealed that his firm is bidding for recognition from the International Tasters' Society, inviting the society to review the meals presented by KASCO for all the airlines flying out of Kuwait International Airport. - Kuwait Times
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