By Andy Sambidge
Low cost airline reduces 2007 order for A320s from 40 to 15 as carrier sees overcapacity in market
Kuwaiti low-cost carrier Jazeera Airways has cut its order of Airbus A320s from 40 to 15, its parent group said on Wednesday.
Jazeera Airways Group confirmed the cancellation, although it added that it will still take four A320s from 2012 to 2014.
"The decision to resize our fleet is the right decision for Jazeera Airways at the time being, given the overcapacity we've seen in the market in 2009 and 2010," says chairman Marwan Boodai.
But he added that Jazeera "might revisit this decision" given the new A320 variants being introduced.
Jazeera placed the order for the A320s in 2007 and the decision to adjust the short-term fleet size was part of an internal business enhancement plan called the 'Turn-Around Plan" that began rolling out in May 2010, the company said.
Jazeera Airways reported a third quarter net profit of KD4.4 million, the airline's best Q3 on record, and a fourth quarter net profit of KD2 million, making the second half of 2010 the airline's best second half since 2008.
Boodai added: "As we look forward to announce a good first quarter 2011, we thank our most valued partner Airbus for their continued support for theairline since 2005, and look forward to their continued supportfor years to come."
In 2010 the airline carried a total of 1.3 million passengers.