Just to follow on from the article stating that nothing was happening......
Now its time to hold to your seat and enjoy the ride
JEDDAH: Saudi Arabian Airlines signed five landmark agreements Sunday to privatize its core aviation unit, establish a new company for ground services at all Saudi airports, finance its new fleet of aircraft and manage the IPO of its catering company.
The agreements were signed in the presence of Crown Prince Sultan, deputy premier and minister of defense and aviation, and chairman of the board of directors of Saudi Airlines during a ceremony in Riyadh.
Prince Sultan commended the national carrier’s achievements in terms of privatizing key sectors, improving services and transporting a record number of passengers and pilgrims. He urged Saudia officials to exert greater efforts in the service of citizens and the guests of God who come for Haj and Umrah.
Khaled Al-Molhem, director general of the airline, said the new privatization agreements with Saudi and foreign companies were signed on the basis of a strategic plan, adding that it would improve the performance and services of the airline’s different sectors.
The Supreme Economic Council, which is chaired by Custodian of the Two Holy Mosques King Abdullah, has approved the airline’s privatization program. Al-Molhem said the privatization would strengthen the Kingdom’s air transport industry and services. “The plan also envisions making Saudi Arabia the main center for commercial aircraft maintenance in the Middle East,” he said. Saudia’s privatization plan aims to cope with the tremendous progress achieved by the Kingdom in different economic sectors.
The first agreement, which was signed Sunday, aims to merge Saudi Airlines Ground Services Company with National Handling Services Company and Attar Ground Services Company to form a new company to provide ground services in all of the Kingdom’s airports.
The second consultancy agreement with Samba Financial Group and BNP Paribas is to finance the airline’s new fleet of aircraft. The third accord was with Al-Ahli Capital and Morgan Stanley to privatize the core aviation unit while the fourth agreement was with Calyon Saudi Fransi to float part of Saudi Arabian Airlines Catering Company’s shares for public subscription. The fifth agreement aims at developing aircraft maintenance facilities at King Abdulaziz Airport in Jeddah.
Prince Sultan later chaired a meeting of the airline’s board of directors where Al-Molhem explained the measures taken by the management to privatize the organization’s strategic units. He said the airline’s revenue rose by nine percent in 2009 to reach SR18.15 billion, registering an increase of over SR1.5 billion compared to 2008 results.