KUWAIT, 14 October 2007 — Jazeera Airways, described as the only private international carrier in the Middle East, will increase its capital by 100 percent to 20 million Kuwaiti dinars through a rights issue to existing shareholders, the company said in a statement yesterday. The subscription period is from Oct. 21 to Nov. 1 and is open to the airline’s 36,500 shareholders.
Shareholders looking to subscribe are required to apply at National Bank of Kuwait’s (NBK) branches — the official lead manager for the rights issue.
The Jazeera Airways board of directors agreed on the capital increase, which was approved by the Emir of Kuwait, Sheikh Sabah Al-Ahmad Al-Sabah, by a decree.
Jazeera Airways Chairman and CEO Marwan Boodai said: “The capital increase gives us the opportunity to fund the airline’s planned expansion and grow our operations and enter new markets across the Middle East, North Africa, and the Indian subcontinent.”
Jazeera Airways last month announced its new winter routes, bringing the total number of the young airline’s destinations to 23. It also unveiled the tie-up with UAE-based travel supplier Dnata, easy-purchase travel insurance.
Boodai said “we have amazing new routes from Dubai and much awaited routes from Kuwait to Jeddah and Riyadh starting on Oct. 27. We will also be flying non-stop to the Maldives from Dubai, non-stop to Beirut from Dubai, and we will increase our Dubai to Mumbai service to 7 non-stop flights per week.” Jazeera Airways also announced a breakthrough alliance with American International Group (AIG), which offers online customers the option of purchasing travel insurance at the time of their booking. “Travel Guard covers our travelers against unforeseen circumstances such as lost baggage, missed flights, theft of personal items and other incidents that can potentially ruin a holiday. It is optional and has a one-time fee average of $10,” Boodai said.
Last June, Jazeera Airways increased its order from 10 Airbus A320s to a firm order of 40 A320s, making the airline the largest A320 operator in Mideast.
East.
Jazeera Airways is a Kuwait shareholding company that was established in 2004 and raised its capital through a nationwide upfront IPO in June of the same year. The carrier took its first flight on Oct. 30 and remains the “only international airline in the Middle East that is neither owned nor subsidized by any government.”
The airline generated a profit of 2.5 million dinars in 2006, its first full operational year.
Jazeera Airways last month unveiled the tie-up with UAE-based travel supplier Dnata, easy-purchase travel insurance.
Boodai said “we have amazing new routes from Dubai and much awaited routes from Kuwait to Jeddah and Riyadh starting on Oct. 27. We will also be flying non-stop to the Maldives from Dubai, non-stop to Beirut from Dubai, and we will increase our Dubai to Mumbai service to 7 non-stop flights per week.”
Jazeera Airways also announced a breakthrough alliance with American International Group (AIG), which offers online customers the option of purchasing travel insurance at the time of their booking.
“Travel Guard covers our travelers against unforeseen circumstances such as lost baggage, missed flights, theft of personal items and other incidents that can potentially ruin a holiday. It is optional and has a one-time fee average of $10,” Boodai said.
