Agility Logistics Targets Kuwait Airways
Sunday, 11 September 2011

Kuwaiti local media reported Agility Logistics expressing interest in the privatization of Kuwait Airways and the company "anticipate forming an alliance to compete".

Agility (AGLTY:Kuwait) is a publicly traded logistics company headquartered in Kuwait, with more than 550 offices in 120 countries. The company specializes in emerging markets and "challenging environment”.  It views Kuwait Airways complementing  its core business, while it operated aircraft for its operations in Iraq and Afghanistan.

On the news of its interest in Kuwait Airways, share price rose  25.00 & 9.26%  with  2.5 million volume.

Since  1996 Agility Logistics embarked on a series acquisitions taking Tristar Transport (UAE) , Trans-Link Group (Singapore), Cronat Transport Holding AG (Switzerland), Globe Marine Services  (Saudi Arabia), Cosa Freight (China),  Starfreight (Kenya), Transoceanic Shipping and GeoLogistics Corporation (USA), WTS of Houston, Inc. (USA), and Global Express Line (USA).

The company is still suffering from the publicity of the controversy of its contact with the US government. In 2003, Agility was awarded the Defense Logistics Agency’s (DLA) “Exclusive Prime Vendor” contract to supply food and non-food products to the U.S. military services in  Kuwait, Qatar, and  Iraq. Agility’s total revenue from this contract exceeded $8.5 billion.

On Nov. 16, 2009, the U.S. Justice Department made public an indictment alleging that Agility overcharged and committed fraud in connection with its contracts to supply food to U.S. troops and contractors in Iraq and Kuwait.

As a result of this case, Agility and its subsidiaries have been placed on the U.S. government’s Excluded Parties List. That means they are temporarily suspended from pursuing and performing new U.S. government contracts and task orders. Meantime Agility and its subsidiaries continue performing work under existing U.S. government contracts and task orders.