after shutting down half of its roots and firing half of its staff, wataniya airways released news saying that the airline is growing its destinations across the globe through vienna...
yesterday, the airline sends kuwait stock exchange a clarification from the board of directors which had decided to put an additional close on the general assembly meeting's agenda proposing a reduction of the airline's capital, the payment of the accumulated losses, followed by a kd 15 million increase of capital and a major restructuring of the company.
though this might sound like great news, it is not! by connecting the dots and by simply looking at the airline's history in faking good news by publishing good PR, you quickly realize that all this is just sand in the face...
wataniya's debts total millions of kds (alafco put aside), from catering to fuel to every single airport the airline used to fly to.. all these suppliers need to be paid before a single airplane can even start its engines... the kd 15 million will be gone in a matter of seconds.. so what's behind the fake good news? i guess we'll have to wait and see, we may be wrong with our analysis but the writing is on the wall!
to watch, the airline's share price which will resume trading today - what will the shareholders do? sell and run or swallow the poisonous shares? the saga continues..
by the way, i am starting a new category called wataniya airways saga as the subject seems promising..