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Kuwait Airways, Airbus agree to expand deal to $6bn

Kuwait Airways Airbus

Kuwait (Business News Report)|| Kuwait Airways and multinational aerospace corporation Airbus have agreed to expand a deal to include 31 aircraft worth $6 billion.

“We have managed to agree on a monumental restructuring that will position Kuwait Airways in a much stronger place to succeed for the next 15 years,” the company Chairman Ali Al Dukhan told a news conference.

He stressed that the agreement will add new models of different types, capacities and sizes, in line with the company’s vision in the coming years.

The company paid 40% of the value of the deal and delivery has already begun, he explained.

He said that the company was keen to choose aircraft that suit its future plans, pointing to the involvement of the Seabury Consulting company to help it in the upcoming negotiations, especially since this agreement is one of the largest agreements concluded between Kuwait Airways and Airbus.

Restructuring agreement

The restructuring agreement includes nine A-32neo aircraft with a capacity of 134 seats, six A321neo aircraft with a capacity of 169 seats, and three A321neo-LR aircraft with a capacity of 169 seats.

The agreement also includes four A330-800neo aircraft with a capacity of 235 seats, and seven A330-900neo aircraft with a capacity of 291 seats, in addition to two A350-900 aircraft with a capacity of 326 seats, he said.

Al Dukhan said that the total number of aircraft in the company’s fleet will reach 31 Airbus aircraft nd 10 Boeing B777 aircraft.

The Airbus A330-900 is the least expensive per seat among its wide-body counterparts. It accommodates more than 50 additional passengers compared to the A330-800 currently used. This may bring additional revenues.

He stated that the A321neo and A330neo aircraft have proven their ability to achieve savings of 30% in operational costs when they are operated together. This may enable Kuwait Airways to achieve its goals in terms of profitability and sustainability, he said.

The agreement will have a significant impact on the commercial operations of Kuwait Airways, in order to achieve its hoped strategic goals, most importantly keeping pace with the latest technological and service developments in the world of aviation.

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