Originally Posted by
VAMY
Those loss making routes that you mention that are presently "fare controlled" are likely unprofitable because of Saudia's ridiculous high cost base. If moved to a carrier with a dramatically lower cost base those routes will likely generate a profit. That'll be the rationale behind moving them to FlyAdeal.
Presently domestic flights become really "fare controlled" by competitors, not by government.
Compare base fares for some main domestic routes, e.g. JED-RUH for any date after Hajj:
Nesma - 190SR ~42EUR which can cover an A320 seat cost for 1:45 hour flight (I compare with W6 or FR numbers)
Nasair - 250SR
Gulfair - 306SR
Saudia - 339SR
Anyway, what then will happen with
Saudia's ridiculous high cost base which will remain in main company?