Kuwait’s Directorate General of Civil Aviation, the country’s federal body for airline-related activities, has filed a legal claim against the country’s low-cost carrier Jazeera Airways over parking dues.
According to a company disclosure, the publicly traded Jazeera Airways, listed on Boursa Kuwait, has received a legal notice from the General Manager of the Directorate General of Civil Aviation claiming a payment of 1.1 million Kuwaiti dinars ($3.6 million), against aircraft parking charges incurred during the COVID-19 pandemic.
In the disclosure, the company has stated that there is no financial impact as ‘there are sufficient provisions to cover the full amount of the claim’.
The Kuwait-based airline has been on an expansion drive, with Jazeera Airways announcing in March last year of its intention to establish a low-cost airline in Saudi Arabia, to be based at the King Fahad International Airport in Dammam.
In November, the airline reported a 48% drop in net profit to KWD6.99 million Kuwaiti dinars ($22.65 million) in the Q3 2023 compared to KWD 13.37 million a year earlier.
(Writing by Bindu Rai, editing by Brinda Darasha)
