November 4, 2008
Kuwait's Wataniya Airways is on track to start operations as a luxury airline in the Middle East in January despite the global financial crisis, and said it will be operating seven leased planes by the end of 2010.
Chief Executive George Cooper told the Reuters Middle East Investment Summit that the airline had committed USD$250 million - USD$300 million in plane leasing deals.
Wataniya plans to begin by launching a service to one destination in the Middle East with one Airbus A320 model, with more routes in the region to be added.
"At the moment the ambition is limited to the Gulf and the Middle East," said Cooper, a former pilot. "We're in negotiations, in discussions," he added, declining to specify which route would be up and running first.
Cooper said the airline had leased three planes from local lessor Aviation Lease & Finance Co (Alafco), three from Dutch firm AerCap and one from US firm International Lease Finance Corporation.
It will have four planes operating during 2009 and a further three during 2010, Cooper said, adding that it was difficult to say when the carrier would actually take off in January depending on the delivery of its first Airbus.
"We actually don't know. You'll find this hilarious. We don't know when we get the airplane, we know it's in January," he said.
Wataniya will be the third carrier in the major OPEC producer state after loss-making state-owned Kuwait Airways and Jazeera Airways, a low-cost airline.
The airline wants to tap into rising demand for luxury services in the Gulf Arab state, which has one of the highest per capita incomes and where citizens often fly to Middle Eastern places such as Cairo, Dubai or Bahrain over the weekend.
State carrier Kuwait Airways has missed out on a fleet overhaul undertaken by other Gulf carriers, which have spent billions of dollars to buy new aircraft with the latest on board entertainment features.
"Creating this airline is something that will work in Kuwait," Cooper said. "I can't think of many other places in the world where it would."
Wataniya will be luring luxury travelers by equipping planes with only 122 seats fitted with sports car-style leather seats. Passengers will be able to make cellphone calls and send texts and will be ferried to the airport by limousine. The Airbus A320 can carry up to 164 passengers.
He declined to say what load factor -- a key industry benchmark -- the airline expected, saying only the budget was based on less than the typical 68-70 percent of a short-haul carrier in Europe.
"We have tried to balance our books on a lower number and that remains to be seen," Cooper said.
He said a falling oil price coming off peaks in July was good for the luxury airline but prices should not drop too much as this might hit demand.
"Kuwait is a petrodollar economy, so there is a minimal oil price we want to see," Cooper said.
(Reuters)
Kuwait's Wataniya Airways is on track to start operations as a luxury airline in the Middle East in January despite the global financial crisis, and said it will be operating seven leased planes by the end of 2010.
Chief Executive George Cooper told the Reuters Middle East Investment Summit that the airline had committed USD$250 million - USD$300 million in plane leasing deals.
Wataniya plans to begin by launching a service to one destination in the Middle East with one Airbus A320 model, with more routes in the region to be added.
"At the moment the ambition is limited to the Gulf and the Middle East," said Cooper, a former pilot. "We're in negotiations, in discussions," he added, declining to specify which route would be up and running first.
Cooper said the airline had leased three planes from local lessor Aviation Lease & Finance Co (Alafco), three from Dutch firm AerCap and one from US firm International Lease Finance Corporation.
It will have four planes operating during 2009 and a further three during 2010, Cooper said, adding that it was difficult to say when the carrier would actually take off in January depending on the delivery of its first Airbus.
"We actually don't know. You'll find this hilarious. We don't know when we get the airplane, we know it's in January," he said.
Wataniya will be the third carrier in the major OPEC producer state after loss-making state-owned Kuwait Airways and Jazeera Airways, a low-cost airline.
The airline wants to tap into rising demand for luxury services in the Gulf Arab state, which has one of the highest per capita incomes and where citizens often fly to Middle Eastern places such as Cairo, Dubai or Bahrain over the weekend.
State carrier Kuwait Airways has missed out on a fleet overhaul undertaken by other Gulf carriers, which have spent billions of dollars to buy new aircraft with the latest on board entertainment features.
"Creating this airline is something that will work in Kuwait," Cooper said. "I can't think of many other places in the world where it would."
Wataniya will be luring luxury travelers by equipping planes with only 122 seats fitted with sports car-style leather seats. Passengers will be able to make cellphone calls and send texts and will be ferried to the airport by limousine. The Airbus A320 can carry up to 164 passengers.
He declined to say what load factor -- a key industry benchmark -- the airline expected, saying only the budget was based on less than the typical 68-70 percent of a short-haul carrier in Europe.
"We have tried to balance our books on a lower number and that remains to be seen," Cooper said.
He said a falling oil price coming off peaks in July was good for the luxury airline but prices should not drop too much as this might hit demand.
"Kuwait is a petrodollar economy, so there is a minimal oil price we want to see," Cooper said.
(Reuters)
