Rumors have been circulating lately on the comeback of Wataniya Airways since it ceased operations back in 2011. Al Qabas Newspaper published an article highlighting the steps Wataniya’s management have to accomplish in order to see the name flying again. In a nutshell, the company is dire need of capital and that is most likely only coming from foreign investors. Now the company has to extinguish the accumulated losses it has incurred since 2009, reduce their capital, and call for capital increase presumably from foreign investors.
Al Qabas explains that before diving into capital restructuring, the company has to seek resolutions for thier financial liabilities, such as arriving at a mutual agreements with lenders and third parties to reconcile all their dues. Now the most important move is that of the current owners/shareholders; unless they make a bold move to support the company, no one will illustrate any signs of mercy towards Wataniya.
I am not that of a conspiracy theorist, but isn’t it harder for Wataniya to survive now especially with the revival plans of Kuwait Airways? Presumabley Kuwait Airways will be a tougher competitor for Wataniya in 2-3 years time; is there are merger/aqcuisistion in the horizon?