Jazeera's plans for Kuwait Airways thwarted as privatisation plans face abandonment

The new proposal will be put before parliamentarians for a vote on 16 June, though Al Roumi stressed that MPs have already voiced strong support.

Asked what this meant for long-running efforts to find a strategic investor, she told Arabian Aerospace: "It's off. It will be cancelled. The government will keep control of Kuwait Airways."

Jazeera Airways last month offered to acquire 35% of the flag-carrier under the terms of the original privatisation plan, which had envisaged 40% of the airline being listed on the stock exchange, 5% going to staff, and 20% being retained by the government.

But MPs are now being asked to consider a new ownership structure, whereby the government will retain a 75% stake, 20% will be listed on the stock exchange, and 5% will go to staff.

Talal Al Tamimi, head of strategic planning at Kuwait Airways, said he doubted whether the private sector had the wherewithal to assist the flag-carrier.

Pointing to intense competition in the Gulf, Al Tamimi said: "Look at Emirates, who owns them? Look at Qatar Airways, who owns them? There is nothing different about Kuwait. What matters is the management, the way the airline is run. Not who owns it."

Al Roumi concurred, describing Jazeera's letter of intent as "not the best solution" for Kuwait Airways.