Wataniya upbeat on launch despite global crisis

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.

MORE FROM ARABIANBUSINESS.COM