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Kuwait’s Jazeera Airways to double share capital

KUWAIT CITY - Kuwait’s first private budget airline Jazeera Airways announced on Tuesday it will make a rights issue aimed atdoubling its capital to 70 million dollars to finance expansion.

“The capital increase gives us the opportunity to fund the airline’s planned expansion and grow our operations to enter new markets,” chairman and chief executive officer Marwan Boodai said.

The issue is open only to the airline’s 36,500 shareholders, with thesubscription period running from October 21 to November 1.

Last June, Jazeera made a multi-billion-dollar order for 40 Airbus A320s, up from an initial order of 10 aircraft.

The airline currently operates five Airbus A320s with flights to 23 destinations in the Middle East, North Africa and the Indian subcontinent from two hubs in Kuwait and Dubai.

The airline, which made its maiden commercial flight in October 2005, posted a profit of 8.9 million dollars in 2006, its first full year of operation.

Jazeera was established in May 2004 with a capital of 34 million dollars, 30 percent of which is owned by a group of core founders while the rest was sold in a public offering.

The airline was founded by Boodai Group, a leading Kuwaiti business group which has investments in the media, transport and aviation sectors.

Jazeera offers very low fares with flights to Manama and Dubai one way for as little as 40 dollars.