In march 1954, the Kuwait National Airways Company was established with a capital of KD.150,000. By 1955, the airline was facing economic hardships which prompted the Kuwait Government to extend financial help by acquiring a 50 percent interest for KD.100,000. As a result the company's capital was doubled and its name was changed to Kuwait Airways Corporation (KAC). In 1960, a second airline was formed which proved to be a tough competitor for KAC. In 1962, KAC shareholders sold all of their shares to the Government. By 1964, the Government bought the second airline and added its 4 aircrafts to the KAC fleet. Until August 1990, KAC was operating a fleet of 21 aircrafts, flying to 42 destinations in 35 countries worldwide. After the liberation of Kuwait in 1991 from the Iraqi occupation, KAC was re-launched. At present KAC is equipped with a fleet of 18 aircrafts and has expanded its route network to cover 42 destinations worldwide.