The Kuwaiti parliament on Tuesday blocked the flag carrier’s budget for the fiscal year which started April 1, reported the official Kuwait news agency (KUNA).
Kuwait Airways has projected a deficit of $103.6 million for the 2001-2002 fiscal year, along with hundreds of millions of dollars in accumulated losses since the 1990 Iraqi invasion of the emirate, said the agency.
Only 19 MPs voted for the budget, well short of the necessary 32, while 18 voted against, and six abstained.
The airline has suffered from cash-flow problems and debts which peaked at $1.4 billion after the seven-month Iraqi occupation, when it lost 86 percent of its capital.
Meanwhile, a vote on the budget approval for the Kuwait Petroleum Corporation (KPC) was postponed for lack of quorum, KUNA added.
The next round of voting is scheduled for June 18.
A report prepared by the budget and final account committee revealed that KPC's estimated revenues for the 2001-2002 year was almost five billion dinars ($16 billion).
A number of MPs expressed concern about the company and the oil sector in general, the agency said.
Some of them urged that the maintenance of oil facilities be more careful to avert any accidents or leaks – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
