Kuwait: No financial impact on Jazeera Airways from the ‘Balloon' ruling
KUWAIT CITY - Jazeera Airways Chairman Marwan Boodai explained that the $236 million ruling in favor of the Ministry of Defense in the balloon case will not financially impact Jazeera Airways due to the comprehensive insurance coverage and full provisions in place for such incidents.
Boodai told Al-Arabiya and CNBC Arabia that airlines are constantly exposed to incidents and accidents, indicating Jazeera Airways is not an exception.
The Directorate General of Civil Aviation (DGCA) investigated the 2017 accident, when a Jazeera Airways airplane collided with a cable of a tethered balloon. The investigation uncovered several intertwined reasons between parties in the DGCA, air traffic control, Jazeera Airways, the pilot and his assistant, and the Ministry of Defense. This led to the initial ruling.
Boodai emphasized that Jazeera Airways has established full allocations for this case. 'Insurance companies will cover any accident, while airlines receive premium allocations and other benefits according to the agreement with the insurance companies. The percentage that Jazeera Airways will pay under the terms of its insurance contracts has yet to be determined, but it will be a very modest sum. Jazeera Airways has full insurance coverage for this case from international insurance companies until a final ruling is issued,' he clarified. In another development, Jazeera Airways announced its efforts to enhance its operational processes by providing self-service ground handling services for its fleet at Kuwait International Airport.
This strategic step supports the company's ongoing transformation journey to increase operational efficiency, enhance customer experience, and reduce operating costs. Jazeera Airways continues to achieve significant milestones in its growth journey as it approaches the 20th anniversary of its first flight. It now operates a fleet of 24 Airbus A320 aircraft, carrying approximately five million passengers annually. It also holds a 31 percent share of passenger traffic at Kuwait International Airport and operates more than 18,000 flights annually.
The airline stated that it is preparing for a significant growth phase with the delivery of new aircraft starting in 2027 as part of an order valued at more than $3.4 billion. This includes 26 new aircraft -- 18 Airbus A320s and eight Airbus A321s. Boodai disclosed that 'following our success at Jazeera Airways, in cooperation and under the supervision of the DGCA, in establishing specialized departments for aircraft maintenance, flight training, and continued airworthiness management (CAMO); we are now seeking to expand our operations to provide autonomous ground handling services as a pivotal achievement within our long-term strategy to improve operational efficiency and enhance the passenger experience, in coordination with the concerned authorities.' He added 'as we continue to expand and prepare to receive new aircraft, this strategic step will enable us to improve operational execution time, deliver superior service quality and reduce costs; ensuring that our prices remain competitive and affordable for our customers.'
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