Fawaz Al-Farah (right) and Yousef Al-Fouzan launch the exhibition

KUWAIT: Kuwait Airways expects to make a profit within the next two to three years, its chief executive said yesterday, as it aims to cut costs and improve its operational efficiency. The airline's losses for 2015 will be less than KD 20 million ($66.3 million), compared with KD 33 million in the previous year, Chief Executive Abdullah Al-Sharhan said. "In 2015, we aim to reduce some of the losses. We continuously improving," he said. Kuwait's government has approved plans to privatize the airline. Under the proposal, 20 percent of the airline's shares would be offered to Kuwaiti citizens, five percent to current and retired employees, while the government would retain the rest. Sharhan said that parliament is expected to pass this plan in the next few months.

Sharhan also revealed some of the carrier's present and future operations and expansion plans. "We intend to renew the current fleet with 12 aircraft from Airbus - five A330s and seven A320s - which should be executed during 2015 and 2016. By the end of 2016, we will start receiving 10 Boeing 777 aircraft till the mid of 2017. In 2019, we will start receiving 25 aircraft from Airbus including 15 A320 planes, which we will receive till 2021, and another 10 A350/900 aircraft from 2020 till 2022," he pointed out.

"To execute this plan, we need to develop and enlarge the airport. We also need infrastructure and smart and spacious airports. In 2022, we will have 47 new aircraft in the fleet, both leased and bought. We expect to have the second terminal completed within 5 to 10 years, and in 18 months from now, the construction of a new airport for Kuwait Airways will start. As part of the expansion plan, we will build a maintenance base, 10 hangars and runways, a training center, and land service center. We are only waiting for the lands to start the projects," stressed Sharhan.

Sharhan was speaking at the Directorate General of Civil Aviation's 5th annual emerging airports conference and exhibition called "Expansion of Airports - Kuwait 2015". DGCA President Fawaz Al-Farah said civil aviation is one of the most important sectors participating in realizing economic and development plans by providing work opportunities and increasing the total local product. "Such conferences and exhibitions shed light on projects that aim to develop the civil aviation sector in Kuwait. The value of these projects is around $6 billion," Farah noted during the opening ceremony held yesterday.

The two-day conference at the Regency Hotel is held under the auspices of Minister of Communications Essa Al-Kandari, with Kuwait Airways as the diamond sponsor and ALAFCO as golden sponsor. The event is organized and managed by Kuwait's Expo Tag for Organizing Exhibitions and Conferences Co and Babylon International of the UAE.

Airports in the region and particularly in the GCC countries are rapidly developing. "These governments aim through these developments to increase abilities and improve services according to the increasing number of passengers using their airports. The civil aviation in Kuwait has prepared a major plan of expansion and developing projects of Kuwait International Airport. All these projects aim to improve the aviation services provided here," added Farah.

The expected growth of air traffic at Kuwait airport during the next 10 years will reach 7 percent per year. "The expansion plan is in line with the fast growth of air traffic. The most important plans are the expansion of the new terminal 2 at the airport, the supporting terminal project, developing the current runways - both the east and west ones - and building a third new runway, building a second control tower, carrying out the second phase of an air freight city, develop navigation equipments and the weather broadcast system, building and developing the road network at the airport and developing the electricity infrastructure," he explained.

Director General of DGCA Youssef Al-Fouzan stated that this event contributes to strengthening the Kuwaiti economy and will highlight the latest products, technologies and services related to airports. "The conference will discuss studies of investments and commercial opportunities for joint ventures with the public and private sectors through BOT (Build-Operate-Transfer)," he stated.

The Ministry of Public Works and Ministry of Interior are participating in the conference, in addition to many companies specialized in aviation and its various services such as NAS Co, Nisf Group for Trade and Industrial Engines, the Aviation Department of the Australian College, Alam Steel Factories Co, United Projects for Air Services, the French company Real France and several international companies such as Selex, Smiths Detection, Siemens, Jet, Teko International and Cavotech.

During the conference, Vice Chairman and CEO of ALAFCO Airplane Finance, Purchase and Leasing Ahmad Al-Zeben spoke about the general trends of the aviation industry in Kuwait and the region. Then CEO of Bahrain Airport, Mohammad Youssef bin Falah, spoke about airport economic and commercial development opportunities, while the Hassan Houri, the CEO of National Aviation Services (NAS) Group spoke on the issue of development and improvement of passenger services and the future developments of self service.

First-day panel discussions covered three main themes - airports capacity in the region, sustainability in the development of airports and effect of regional situations on the aviation sector, with presentations by Fouzan, Zeben, Falah and Regional Manager of Hill International Mohammad Al-Rais.

CEO of Erbil International Airport Talar Fae, spoke about the challenges facing Erbil International Airport in Iraq's Kurdistan region. Meanwhile, Adonis Sokker, Business Development Manager - SITA, a company specialized in the field of air transport communications and IT, spoke about moving towards the next phase of airport development through technology and innovation.

On the agenda of the second day of the conference is Jamal Al-Foudari from the Australian College, who will speak about training requirements in the aviation field in Kuwait and the region; while Senior Consultant of Business and Financial Services Vinod Karthik from India will deliberate about the motivating factors for development and change in airports.

Moreover, Vice Chairman of Facilities Management at Saudi Oger Dr Waleed Youssef will address the management of airport facilities; and Sales Manager at Cavotech Co Yakeen Dabda will talk about ways to improve ground operations at airports and provide services to airplanes at airports. Additionally, Pedro Russo, Business Development Manager at Tisen Group Elevators in the Middle East in Dubai will give a lecture; plus a speaker from Cisco, as well as Hamdi Shok and the CEO of GRM Airport Development in India.

By Nawara Fattahova