Wataniya upbeat on launch despite global crisis

zoom

TAKEOFF DATE: Wataniya Airways will launch on Jan 24. (Getty Images)

Wataniya Airways chiefs have dismissed concerns about the Kuwaiti airline's imminent launch during the economic downturn.

The business and first-class airline is starting flights from Kuwait to Dubai on January 24 amid unfavourable market conditions in aviation.

But Wataniya’s chief commercial officer Paul Sies insists the premium carrier’s directors have planned for every eventuality – including a drastic rise in oil prices.  

“It [oil price hike] won’t have a real impact because when we were doing our figures oil was $150, so most of our budget was constructed around an oil price way higher than it is now,” Sies told Arabian Business.

“The prices could go up three times and we’re still within budget. I have been starting up airlines throughout my life, and the best time to do it is actually the worst time for the industry. The worst thing you can do is create an airline with positive thoughts, thinking it will all go well – that’s when everything goes wrong.”

George Cooper, CEO of Wataniya, is also confident the airline is well equipped for launching during a market slump. When speaking to reporters, Cooper said: “You may wonder why anyone would launch an airline now. But we see a good internal Kuwait market for such a service.”

Despite his positive outlook, Sies admits it’s unlikely Wataniya will generate profits during the opening 12 months.

He said: “We are not looking at hitting profit in the first year. If we breakeven we will be very happy. If we are operating below that we will have to adjust the model to bring it back.”

Sies’ comments come one month after Giovanni Bisignani forecast a bleak 2009 for Middle East aviation. The International Air Transport Association’s chief executive said Gulf carriers will report $200 million losses this year.  

Once launched, Wataniya will operate twice daily flights on A320s from Kuwait to Dubai. It will also introduce services from Kuwait International Airport to Beirut and Bahrain in March.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM