Aviation Sector Governance – What Stands and What Could Be: A Case Study of Kuwait Airways’ Transformation from Corporation to Company

Dr. Mashael Alhajeri
Assistant Professor – School of Law – Kuwait University

Abstract:

In consideration of the nature of the aviation sector and the diversity of its integrated parties; from countries having sovereignty over its airspace to international companies with huge budgets, the large interest interactions shall be deemed as one of the irrefutable facts within this sector. Gradually, this sector has adopted new philosophies concerning its rational organizational level of management. These philosophies have been reflecting their impact in the form of new culture, exploring the relationship between the law and good governance.
As for Kuwait’s case, Kuwait Airways Corporation has experienced major challenges, whether politically or economically: Iraqi Invasion, weak management, and new entrants to the market, to name a few. Accordingly, these factors have, for many years, kept it beyond the track of competition with its Gulf counterparts. However, pursuant to Law No. (6) Of 2008, as amended, on transferring Kuwait Airways Corporation to a joint stock company, it was the turning point in the history of Kuwait Airways.
Yet, the task seems more challenging. It is necessary to overcome a lot of obstacles and fight against many fronts. These challenges include Financing and assets, enhancing the level of business competition, compliance with the control systems, disputes settlement, insurance and risk management. All these matters shall be conducted in the scope of appropriate regulation in accordance with the rules of good governance.
According to the foregoing background, this paper examines the good governance as applicable in the aviation sector, and highlights some comparative experiences, through discussing the general frameworks of the said experiences, focusing on Kuwait Airways as a case study.

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