Privately owned Kuwaiti Jazeera Airways has begun bidding to acquire a 35 percent stake of government-owned Kuwait Airways.
Although Kuwait Airways is one of the region's oldest airlines, it has struggled in recent years to compete against other Gulf carriers such as Emirates and Qatar Airways . A Sunday statement by Jazeera Airways – a budget airline – explained that it had formally communicated its intent to purchase the stake, which is the largest allowed by one investor under a government-led privatization process.
Jazeera stated that it intends to transform Kuwait Airways into "a leading airline that meets the ambitions of the Kuwaitis and travelers across the world," according to USA Today . The statement also added that this would be the first government privatization to surpass $3 billion in Kuwait.
Budget airlines have been making gains recently throughout the region with Air Arabia expanding operations into Jordan last month, following the airline's purchase of a 49 percent stake in Jordan's Petra Airlines.
However, Jazeera Airways remains dwarfed by Air Arabia and its biggest competitor, FlyDubai, which both now serve more than 80 destinations.