Kuwait Airways talks about compensation amid delivery delays

The chairman of Kuwait Airways told the media on Tuesday that the airline based in the Middle East expects payment for any delays in the delivery of commercial aircraft from Airbus (AIR.PA).

The chairman of Kuwait Airways informed the media on Tuesday that the Middle Eastern airline anticipates payment from aircraft manufacturer Airbus (AIR.PA) for any delays in delivering commercial aircraft.

Manufacturing industries such as aerospace are facing supply chain constraints. Pressure to begin paying penalties to planemakers has been increasing this year. In an interview at the Dubai Airshow, Abdulmohsen Salem Alfagaan stated that they are talking about it with them. Airbus will provide some compensation as they are impacted and are required to.

Without mentioning the duration of the delay or the kind of aircraft, Alfagaan said that delivery delays had caused the airline to reschedule flights and modify its network. A representative for Airbus stated that discussions with clients were private.

According to Airbus data, state-owned Kuwait Airways is currently placing orders for nine A321neo and one A320neo narrow-body aircraft, as well as seven A330-900 and two A350-900 wide-body aircraft.

According to Alfagaan, Kuwait Airways' present business model calls for profitability this decade, and it doesn't anticipate placing a new aircraft order for the next three to four years. The Israel-Hamas conflict has caused a 50% decline in demand for some destinations, thus the airline is cutting frequencies on select routes in the Middle East and Turkey, according to Alfagaan.

Due to concerns that the fighting would lead to a regional conflict, some travelers have canceled their plans to visit the area.