Jazeera Eyes Profit

10.05.2010 Aviation

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Kuwaiti low-cost carrier Jazeera Airways has deferred some aircraft orders to rein in costs and return to profit, its Chief Operating Officer said.

The company has firm orders for 29 Airbus A320 aircraft which were to be delivered by 2014. Now it expects to receive the last of these planes by 2016, Reinhard Kossack was quoted as saying by Gulf Daily News.

 


Two deliveries originally expected for next year have been postponed until a later point in time, he said. "But if the economy picks up, we change that," said Kossack.


Jazeera Airways lost KD8 million ($27.78 million) last year but expects to return to profit this year after shrinking its fleet, deferring aircraft orders, and raising cash.


Jazeera said it plans to raise capital by 91 per cent through a rights issue after taking over Sahab Aircraft Leasing Company for KD25.6 million. It also shrank its fleet to six from 11 aircraft and shrank its network to focus on profitable routes. Of the five aircraft removed from the fleet, four have now been leased to Virgin Atlantic.

 
 

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