Kuwait Airways Raises Airbus Orders to 31 with $ 6 Billion Transaction

Kuwait: Kuwait Airways yesterday announced a restructuring agreement reached in 2014, expanding 31 $ 6 billion contracts with Airbus.

“We were able to agree on a monumental restructuring that would place Kuwait Airways in a much more powerful location for success over the next 15 years,” said company chairman Ali Al-Dukhan at a press conference. Said in. The new contract to add three new aircraft to the existing 28 orders includes nine Airbus A320neo, six A321neo, three A321neoLR, four A330-800neo and seven A330-900neo. Includes two A350-900s.

Dukhan said the restructuring of the travel industry after the coronavirus pandemic is now “totaling about $ 6 billion.” “The fix was made in 2018, but the transaction needed more fix as it needed to be more flexible, especially in the post-COVID aviation industry, for the future of Kuwait Airways.” He said.

Kuwait Airways has received eight aircraft so far and “expects more than two by the end of the year,” Dukhan told AFP. “Most aircraft will arrive by 2026.” “This agreement gives us more flexibility to expand to more destinations,” he said, and airlines will start from 57 within the next two years. He added that he was aiming to grow into 100 direct destinations.

Negotiations were held in 2020 against the backdrop of bribes in other countries that would cost Airbus a multi-billion dollar settlement fee. Payment has been made and delivery has begun, “says Dukhan. He added: “We went into four months of serious and professional negotiations, which sometimes got hot, but always respected and understood each other’s desires and needs.”

Kuwait Airways initially ordered 15 Airbus A320neos and 10 A350s in 2014 and began delivery in 2019. British and American courts. Under the settlement, Airbus has agreed to pay a fine of € 3.6 billion ($ 4.1 billion) to resolve corruption investigations on some of its aircraft sales.

Last week, the European giant announced a record profit of € 4.2 billion ($ 4.8 billion) in 2021 after losing for the second consecutive year during the pandemic. Airbus said in its income statement that aircraft deliveries increased 8% to 611 aircraft. – AFP