Jazeera Airways reports 2009 results

Chairman Marwan Boodai said, "We entered 2009 knowing it would be a challenging year not just because of the financial crisis alone but also the extra capacity that entered the region. With that in mind we chose to stay the course and work to seize a leading market share, which we did by the third quarter when we became the largest operator in Kuwait. Looking back at 2009, it was a year of contradictions; we navigated through a tough business environment and came out the with largest market share in our airline's history. Throughout it all, we continued to optimize our network in line with market demand."

In 2009, Jazeera Airways carried over 1.8 million passengers, bringing the total number of flown passengers since the airline's first flight in late 2005 to 5.2 million passengers.

Yesterday, the company unveiled its network optimization initiatives in line with market demand. The airline announced flights to Lahore, Mumbai, Delhi, as well as new flights to summer destinations of Antalya, Hurghada, and Salalah.

Forward strategy

Last month, Jazeera Airways rolled out its vertical integration strategy to drive addition growth and profitability for the airline through acquisitions, infrastructure investments, and strategic partnerships.

On February 15th, the airline took the first step in executing this strategy by acquiring Sahaab Aircraft Leasing, a profitable leasing company with a fleet of nine Airbus A320s. Instantly accretive to Jazeera Airways, the acquisition increases Jazeera Airways capitalisation and facilitates growth for the airline by giving it access to regional and global leasing markets. The acquisition, expected to be completed prior to March 31, 2010, will enable Jazeera Airways to consolidate Sahaab's earnings beginning from January 1, 2010, adding an expected KD1.2 million in operational revenue in the first quarter of 2010. Funding will be completed through a rights issue in the third quarter to existing shareholders