Shareholders of the Middle East’s only private scheduled airline Jazeera Airways today approved increasing capital by 100% to KD 20 million and listing of company shares on the Kuwait Stock Exchange in Q1 2007. Shareholders approved the Board of Directors recommendation to increase capital from KWD 10 million (USD 34 million) to KWD 20 million (USD 69 million) by issuing one hundred million (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 growing 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.
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.’
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 2004/2005, and elected Mr. Suhail Homsy in place of the resigned Board Member Mr. Saleh Al Huwaidy.
Jazeera Airways is a Kuwait Public Shareholding Company established in 2004 (operated in October 2005) with a capital of KD 10 million raised through one of the most successful IPO in Kuwait’s history, making it the only privately owned airline in the Middle East. Based on a low fare business model that maximizes across-the-board efficiency in operations, Jazeera Airways enables travelers to fly without a ticket and book through the web and SMS, giving travelers more independence, spontaneity, and fares up to 50% less than the market.
Jazeera Airways, which took its first flight on October 30, 2005, operates a fleet of new Airbus A320 aircraft and serves some of the most popular destinations for both business and leisure in the Middle East, North Africa, and the Indian Subcontinent, including Dubai, Beirut, Bahrain, Damascus, Aleppo, Amman, Alexandria, Luxor, Mumbai, New Delhi, Mashhad, Assiut, and Cochin. Travelers are able to book via jazeeraairways.com, travel agents or call or SMS the Jazeera Airways reservation number 177 (or *177# for SMS) - Kuwait only - to receive a booking reference number for easy, ticket-free check in.