(MENAFN- Arab Times) KUWAIT CITY, March 12: Kuwait Airways Corporation (KAC) has failed to collect debts worth about KD 164.286 million from its various clients, reports Al-Shahed daily. According to reports issued by regulating authorities, there is a decline of KD 10.525 million, which is about 13 percent, in ticket revenues in local points of sale.
The national carrier said the fall in its revenues is due to reduction in the governmental travel revenues as most governmental bodies have reduced their travel expenses. Also, the implementation of open sky policy is weighing heavily on the national carrier, as the policy has led to a lower average return for a ticket. Another matter to note is the government's decision to change government's tickets from first class to business class and economy class which has reduced the demand for first class.
Regulating authorities stressed the need to work on increasing ticket revenue at points of sale through marketing and promotion of destinations and services for passengers. The reports highlighted the existence of irregularities at KAC, most notably non-collection of debts owed to it by its various clients. The value of these debts, which have been accumulating for many years, is KD 164.286 million, and KAC has not demanded or taken measures to collect them.
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.