SV_741_India_Bravo
26th May 2005, 09:15
First Saudi Private Airline May Take Off This Fall
Javid Hassan, Arab News
RIYADH, 26 May 2005 — The Al-Tayyar Travel Group has asked the government to license a company that will operate a private airline in the Kingdom. The market has up to now been a monopoly of Saudi Arabian Airlines. The new domestic airline is likely to begin operations later this year.
“We have already presented an application to the government to license a domestic airline company,” Dr. Nasser Al-Tayyar, CEO of the group, told a press conference here on Tuesday. He said the new company would have an initial capital of $50 million, adding that it would start operating domestic flights within six months after receiving the license.
“We are negotiating for the purchase of Airbus aircraft to operate the new airline,” he told reporters. As for the exact number and configuration of the aircraft, he said, it would depend on the rules and regulations, which have not yet been issued.
The CEO said the Initial Public Offering (IPO) of the group, which has become a joint stock company, would be floated within two years. The share flotation would be managed by the Gulf International Bank (GIB).
The actual share price is SR50, while the selling price is SR242 per share. Already, 40 percent of the shares have been sold, while the balance will be floated to the public.
He said the plan is to enter the aviation sector first by operating domestic flights and then at a later stage international ones. “We will also support the Kingdom’s tourism promotion plan by operating flights on domestic routes,” he added.
Asked whether the company has plans to operate international flights, Al-Tayyar said it was up to the government to decide whether it was willing to give permission.
“The feasibility study showed that the domestic sector is highly lucrative,” he said.
Asked how many cities would be served by the new airline, he said it would depend on the government’s plan. “We still don’t know which routes will be allowed, whether it will be on the basis of regions or other parameters. It all depends on the type of license we receive,” he explained.
Asked if they had drawn up any plans for the recruitment and training of the crew, he said it would depend on the allocation of routes and regions.
“Some people have their own preferences and choices. So once we know the route that has been licensed to us, then we will decide on the type of crew,” he added.
:confused: :confused:
Javid Hassan, Arab News
RIYADH, 26 May 2005 — The Al-Tayyar Travel Group has asked the government to license a company that will operate a private airline in the Kingdom. The market has up to now been a monopoly of Saudi Arabian Airlines. The new domestic airline is likely to begin operations later this year.
“We have already presented an application to the government to license a domestic airline company,” Dr. Nasser Al-Tayyar, CEO of the group, told a press conference here on Tuesday. He said the new company would have an initial capital of $50 million, adding that it would start operating domestic flights within six months after receiving the license.
“We are negotiating for the purchase of Airbus aircraft to operate the new airline,” he told reporters. As for the exact number and configuration of the aircraft, he said, it would depend on the rules and regulations, which have not yet been issued.
The CEO said the Initial Public Offering (IPO) of the group, which has become a joint stock company, would be floated within two years. The share flotation would be managed by the Gulf International Bank (GIB).
The actual share price is SR50, while the selling price is SR242 per share. Already, 40 percent of the shares have been sold, while the balance will be floated to the public.
He said the plan is to enter the aviation sector first by operating domestic flights and then at a later stage international ones. “We will also support the Kingdom’s tourism promotion plan by operating flights on domestic routes,” he added.
Asked whether the company has plans to operate international flights, Al-Tayyar said it was up to the government to decide whether it was willing to give permission.
“The feasibility study showed that the domestic sector is highly lucrative,” he said.
Asked how many cities would be served by the new airline, he said it would depend on the government’s plan. “We still don’t know which routes will be allowed, whether it will be on the basis of regions or other parameters. It all depends on the type of license we receive,” he explained.
Asked if they had drawn up any plans for the recruitment and training of the crew, he said it would depend on the allocation of routes and regions.
“Some people have their own preferences and choices. So once we know the route that has been licensed to us, then we will decide on the type of crew,” he added.
:confused: :confused: