Kuwait's Jazeera Airways inks $200m A320 financing

Low-cost carrier expects ‘record profits’ in 2011, says chairman Marwan Boodai
Kuwait's Jazeera Airways inks $200m A320 financing
Jazeera expects record profits in 2011, said chairman Marwan Boodai
By Reuters
Mon 24 Oct 2011 05:39 PM

Kuwait's low-cost carrier Jazeera Airways has secured $200m of
financing to buy four Airbus A320 aircraft, and expects "record"
profits in 2011, its chairman said on Monday.

"By the end of 2011, Jazeera Airways would have
completed its turnaround and covered all its losses," Marwan Boodai told
the Reuters Middle East Investment Summit in Kuwait.

The airline reported a full-year net loss of KD2.8m in 2010,
compared with a loss of KD8.2m in 2009.

The carrier does not plan another capital hike in the next
three years, Boodai said, adding that Jazeera had scrapped plans to set up its
own terminal.

Jazeera obtained shareholders' approval last year to hike
its capital by KD20m ($72.5m) to KD42m and the firm is currently working on the
procedures for the hike, Boodai said.

The carrier, which aims to fly 82 routes in the Middle East
within the next five years, competes with United Arab Emirates-based Air Arabia
and Dubai-based low-cost carrier flydubai.

Boodai said that Jazeera had ditched "small"
markets like Doha, Abu Dhabi and Muscat, citing "flooding" by those
countries' national carriers.

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