Jazeera Airways to double capital to 2om dinars

Dubai: Shareholders of the Middle East's only private scheduled airline, Jazeera Airways, yesterday approved increasing the capital by 100 per cent to 20 million Kuwaiti dinars and listing of the company's shares on the Kuwait Stock Exchange in the first quarter of 2007.

Shareholders approved the board of directors recommendation to increase capital from 10 million dinars to 20 million dinars by issuing 100 million shares for subscription with a nominal share value of 100 fils.

Subscription priority will be for shareholders during a 15-day period.

By doubling its capital, Jazeera Airways intends to gain financial flexibility to fund general working capital needs and capital expenditures, such as expanding its fleet of Airbus A320s.

Jazeera Airways' current fleet consists of 10 new Airbus A320s, four of which were delivered in the last 12 months. The airline also has options for an additional six aircraft of the same type.

Strategy

Commenting on the capital increase, Chairman and CEO Marwan Boodai said, "We accelerated the execution of our organic growth strategy, with the goal of creating value for our shareholders by stepping-up our aircraft orders and widening our destinations network.

"The original business plan grew the fleet to four aircraft by 2009, the new accelerated plan grows the fleet to ten aircraft by 2010 and increases the number of destinations."

Bond issue

Shareholders also approved the board's request to issue bonds in Kuwaiti dinars or any other currency at the time it sees fit, ratified the financial auditor's report for the financial period 2004-05, and elected Suhail Homsy in place of board member Saleh Al Huwaidy, who resigned.

Jazeera Airways, which made its first flight on October 30, 2005, is a Kuwait public shareholding company established in 2004 (operated in October 2005) with a capital of 10 million dinars raised through one of the most successful IPOs in Kuwait's history, making it the only privately owned airline in the Middle East.

Based on a low fare business model that aims to maximise efficiency in operations, Jazeera Airways enables travellers to fly without a ticket and book through the web and SMS. Its fares, in some cases, are up to 50 per cent less than the market.