Saudi domestic routes

[Fool 'n' Tameez]

Hi everyone,

Ramadan Mubarak.

It appears that NASair and Sama are to take over a fair chunk of Saudi domestic routes. On some reports it is said that Saudia will drop 50% of it's domestic network. For it's part, NASair announced that they were taking over PSO routes from SV. Looking at the map on their website, it looks like they will be operating every route ex-Riyadh.

Is Saudia giving up all domestic routes from Riyadh? Even RUH-DMM? Is this the beginning of concentrating on their Jeddah hub? Or am I reading too much into this.

Also, how the hell is NASair going to fl all of these routes with their fleet? Last time I heard they had to postpone fleet expansion because of financing difficulties.

[mutt]

GACA had an ad in newspapers yesterday stating that SVA were not dropping DMM-RUH as none of the lo-cos were capable of taking it over.

As for the routes out of RUH, they are PSO routes without ANY goverment funding. It will be really interesting to see if they can make any money with the Airbus:)

Mutt

[Fool 'n' Tameez]

Thanks for the clarification mutt.
Like you said, it would be interesting to see how NAS would do on these routes. They will definitely need more planes. 2 busses ain't enough. Some turboprops might be a good idea, they have very low trip costs. But they'll have to break the single type business model.

[mutt]

Some turboprops might be a good idea

Turboprops are OLD !!! Not my logic but certainly no govenor is going to accept OLD airplanes operating to his area. They have to go introduce regional jets, but once they do that its going to have a huge impact on their operating/financial models.

Why do you think that SVA were happy to get rid of the routes :):)

Mutt

[fractional]

P.K. Abdul Ghafour, Arab News
JEDDAH, 25 September 2007 - Crown Prince Sultan yesterday disclosed plans to license four more private airline companies within the next few years in order to reduce the burden on Saudi Arabian Airlines.
Prince Sultan, who is Saudia's chairman, made this disclosure while addressing a ceremony held for the signing of an agreement to sell 49 percent of Saudia Catering to a consortium of companies.
The crown prince highlighted the services rendered by Saudi Arabian Airlines to growing number of passengers including millions of pilgrims who visit the Kingdom every year for Haj and Umrah.
He defended the decision to carry out Saudia's privatization in a gradual manner saying it was essential to avoid financial losses. "One day the whole company will be privatized," the Saudi Press Agency quoted the prince as telling the gathering.
Sultan signed the agreement on Sunday night to sell 49 percent of Saudia Catering to Strategic Catering Co. (SCC), a consortium comprising Abdul Mohsen Al-Hokair Tourism and Development Co., Fowzan Holding and Newrest Group Holding. SCC offered the top bid of SR1.703 billion.
The sale came after the Cabinet gave the national carrier the green light last month to convert its strategic units into separate companies in preparation to privatize the airline, the largest in the Middle East with a fleet of 120 passenger and cargo planes.
Saudia put up its catering division for privatization in August last year and received tremendous response from investors. Saudia Catering recorded SR643 million ($171 million) revenue and SR142 million ($37.8 million) net profit in 2005. Saudia Catering currently supplies 25,000 meals daily to 48 airline companies.

[Desert Diner]

Turboprops will not operate very well in the hot (e.g 40C+) desert like environment of Saudi. The smaller wings and slower speed tend to result in some pretty bumpy rides.

As mutt said, you will need Regional Jets to operate the routes.

[mutt]

disclosed plans to license four more private airline companies within the next few years in order to reduce the burden on Saudi Arabian Airlines.

Not sure if this was reported correctly, AFAIK, these 4 airlines will be the present sections of Saudia following privatization.

Mutt

[mutt]

Rumor has it that NAS have signed for E170's....... Interesting mixed fleet concept for a LOCO...


Mutt

[Fool 'n' Tameez]

More than a rumour I believe. They did announce an order for E-jets earlier this year, but they've since said that it's been postponed due to financing problems.

[metro301]

Airbus 320's and E-jets, same as Jetblue in the USA.

With a 50% reduction in domestic routes, what will Saudia do with the aircraft that are freed up?

[mutt]

Saudia do with the aircraft that are freed up?

Increase services on the profitable routes :)

Mutt

[piloton]

WHAT ABOUT IN OUR FLEET WE WENT FROM 75 HRS AVERAGE LINE TO 25HRS I 'VE ONLY FLOWN ONE TRIP TO ADD AND BACK....IT'S NICE TO BE AT HOME BUT.....

GEMINI GUYS ARE SAYING THEY ARE GOING TO FLY SAUDIA'S MD 11'S SO WHAT DO WE FLY AA BACK HOME??:confused:

[fractional]

Saudi Gazette reported that Saudi Arabian Airlines (Saudia) is losing around $482m each year on its domestic routes.
There is nothing new here. This has been known for few decades. They needed to keep the local folks happy. The liberalisation will cut Saudia's costs and make it concentrate on the international routes where it will continue to lose money if it doesn't change its mentality. Will the present Director General make it work?

[ProudHubby]

fractional wrote: Saudi Gazette reported that Saudi Arabian Airlines (Saudia) is losing around $482m each year on its domestic routes.

SV has a big overhead: overstaffed and operating non-profitable routes as I hear from my birddog.

[mutt]

operating non-profitable routes

Check with your birddog.... lots of the non-profitable routes just went to SAMA and NAS....... Wish them luck:):)

Mutt

[coolbreez]

I hop they can start to dig them self's out of the hole they are in.:ugh: