The Middle East witnessed overall air passenger growth of 11.2% in 2009, by far the highest in the world according to the International Air Transport Association.  Worldwide the aviation sector is facing a downturn, however, it seems the Middle East is well positioned against this.  What is your overall assessment of the global and regional aviation sector and are there any positive leads that make you think the slump is ending?

There are already signs that modernization of Kuwait International Airport is going to come in 2010.  How do you see this issue?

Leading Airways in Kuwait, Kuwait Airways, Chairman, Hamad Abdullatif Al Falah: Kuwait has the directive to open Kuwait up for everybody and this includes an open sky policy as well as a 10% discount on aircraft fuel.  A lot of airlines have come to Kuwait and now it is difficult to find gates to park all of the aircraft.  The original airlines in the area (like us) get special treatment by not being able to park at the gate.  The airport needs to be extended to be perhaps double or even triple the size of what it currently is.  This is the airport authorities job but a project will be signed soon to construct a third runway and for the airport to be extended size wise.  Within four or five years this may all take place.

Kuwait Airways has plans to become privatized in 2010.  How do you see this issue and do you agree with the decision?  What kind of benefits will you be able to derive from privatization?

Leading Airways in Kuwait, Kuwait Airways, Chairman, Hamad Abdullatif Al Falah: Because we haven’t done this perhaps we should look at examples of other airlines who have taken similar measures.  British Airways has done this similarly as well as Jordanian airlines.  In Bahrain, Gulf Air has also done this and they are currently in a very good position.  Kuwait is one of the richest countries in the world and for its size it is probably the richest in the area.  I believe its time we buy new aircraft and privatize it so we have the authority to take on maintenance tasks. Aviation requires quick decisions to be made as opposed to working through bureaucratic red-tape like we currently have to face that results in slow turn around and lost time.  If you privatize it will be the best way to take control and become more efficient.

You will be opening up 35% of your airline to international investors.  What is your message to them?

Leading Airways in Kuwait, Kuwait Airways, Chairman, Hamad Abdullatif Al Falah: Kuwait Airways is a pearl, Kuwait Airways is a diamond, and whoever buys with Kuwait Airways will be a winner.  We have the best pilots, engineers, technicians, and training center that serves many Arab countries.  We are ahead of our competitors with regard to all of these aspects.  We are at the end now because our aircraft are older and smaller in number.  If we have a bigger number of aircraft we can offer more destinations and with newer aircraft we will be more competitive and we can capture more of the market.

What kind of challenges will an international investor encounter with Kuwait Airways?

Leading Airways in Kuwait, Kuwait Airways, Chairman, Hamad Abdullatif Al Falah: Our limited number of aircraft might pose a challenge to our investors.  However, there are many benefits due to our location and our competitive edge in the market as a leader.  Kuwait is nearest to Iraq and it will serve as a hub to get there, this will be advantageous in the future.

What are you major challenges?

Leading Airways in Kuwait, Kuwait Airways, Chairman, Hamad Abdullatif Al Falah: Although there has been some negative media regarding Kuwait Airways, our only problems are related to delays.  We have almost solved this problem and we are doing our best to reduce this problem.  Our competitors with new aircraft also pose a challenge to us because customers will always prefer to fly on newer aircraft. It also costs us a lot of many to perform maintenance on our older aircraft because they are about 17-19 years old now.  Because of our old aircraft and the limited number of aircraft we are in a really tight situation.

What is your marketing strategy for Kuwait Airways?

Leading Airways in Kuwait, Kuwait Airways, Chairman, Hamad Abdullatif Al Falah: This is hard to answer because our new investors are currently researching the best way to represent Kuwait Airways as a brand.  Because of this the image and representation the airline has the potential to be quite different in the future if our investors think of new ways to best improve Kuwait Airways appearance.  Therefore, we are going to leave this task to the new comers.   We have stopped all projects until the privatization has been completed.

What is your vision for Kuwait Airways in the next five years?  How will you stand out?

Leading Airways in Kuwait, Kuwait Airways, Chairman, Hamad Abdullatif Al Falah: I would like to see more destinations and more operational aircraft added to our fleet.  We are planning to buy around 27 aircraft and we made a down payment of two million dollars toward this.  Further, I hope we can maintain a high quality workforce to aid in the efficiency and quality of Kuwait Airways. We hope our image will reflect a better situation and the good reputation that we currently have.

What is your final message for our readers?

Leading Airways in Kuwait, Kuwait Airways, Chairman, Hamad Abdullatif Al Falah: Kuwait is suffering a lot these days but Kuwait Airways is still a very good airline in a good position.  We are doing our best to maintain our aircraft according to the highest standards of safety and to provide a pleasant experience for our passengers despite the challenges that we face daily.  We welcome international and local investors to come on board with Kuwait Airways.