Kuwait Airways Corp., the Gulf country's national carrier, will sell a 40 percent stake to the public to fund an expansion. The airline will offer an additional 35 percent of its shares to a strategic investor and 5 percent to employees, with the government keeping the remainder, spokesman Adel Boresly said on Saturday in a phone interview here. The strategic investor “can be a listed Kuwaiti company or any other foreign entity,” including an airline, Boresly said. No local airline can bid for the strategic stake. Kuwait Airways hasn't earned a profit since the 1990 Iraqi invasion, during which 15 of its planes were destroyed. It lost $32 million in the year ended March 31, 2007, and operates 17 airliners now. Kuwait's parliament approved the plan to sell shares to the public Jan. 19. The airline is awaiting cabinet approval for the privatization plan and will choose international consultants to value the airline, Boresly said. The privatization is expected to be completed before the end of 2009, pending cabinet approval, he added. The airline also is looking to lease a mix of five to six wide-body and short-haul planes this year, Boresly said. Meanwhile, the general assembly of JordanKuwait Bank (JKB) approved this week the distribution of JD15 million in cash dividends at a rate of 20 percent and a bonus share for every three shares held by shareholders. The bonus shares represent the capitalization of JD25 million from the issuance premium for raising the bank's capital to JD100 million/shares. According to the profit and loss statement, interest paid by JKB to depositors in 2007 totaled JD67.6 million, slightly higher than the JD132.8 million of interest earned. Commissions reached JD14.7 million compared to JD8.9 million in 2006. JKB's operational profit amounted to JD63.7 million, 13.8 per cent higher than the JD55.9 million generated in 2006. Upon adding JD11.7 million of other income and JD1.4 million in gains from financial assets available for sale, the gross earnings went up by 21.4 percent to JD96.8 million (JD79.7 million in 2006). __
