Bear 555
24th Nov 2005, 10:15
First Low-Cost Airline Planned in the Kingdom
Khalil Hanware, Arab News
JEDDAH, 22 November 2005 — National Air Services (NAS), the largest and fastest-growing provider of VVIP and executive air transport services in the Middle East, announced yesterday plans to launch Saudi Arabia’s first low-cost airline before summer 2006.
The airline, yet to be named, will be the first privately owned domestic carrier to be established in the Kingdom, and the only carrier other than Saudi Arabian Airlines licensed to provide scheduled domestic services.
This announcement comes only four months after the company said it had been awarded the first private Part 121 Air Carrier Certificate ever to be issued by the Presidency of Civil Aviation in Saudi Arabia; and that it had simultaneously launched its Al Khayala VIP Shuttle Service. These announcements, made in July this year, came almost 15 months after the Supreme Economic Council of Saudi Arabia endorsed a recommendation that the Kingdom open up the domestic aviation market to national companies.
Mohammed Al-Zeer, president and CEO of NAS, speaking at a press conference during the 2005 Dubai Air Show yesterday, stressed the significance of what the company had been able to accomplish in recent months.
“NAS has undertaken a mammoth task in obtaining its full air carrier certification and breaking down barriers which had existed under a monopoly for 60 years in the Kingdom”, Al-Zeer said.
“These accomplishments, including the launching of both the Al Khayala service and this new airline, are a testament to the experience and expertise of every member of the NAS team, and a result of their hard work and dedication over the past two years. The writing of this new chapter in Middle East aviation also, of course, would not have been possible without the unwavering support we have received over the years from our board of directors and shareholders, who have believed in us since the beginning.”
S. Nihal, marketing manager of Bin Sammar International, told Arab News that this was a welcome sign. “Saudia is always fully booked throughout the year and it is very difficult for economy class travelers to find a seat, particularly during the busy periods of Haj and Ramadan. Once the low-cost airline is launched, definitely it is going to ease the pressure for travelers.”
He said “travelers generally use land transport such as SAPTCO and private buses and taxis for long journeys. All these transport means are time-consuming. When more avenues are available like low-cost airline, it will save time as well as money for the common people.”
Javed Taji, manager, Hatim Travel Agency, said “from the domestic point of view, it will be very attractive for people. For instance, at present, there is SR200 difference between business class and economy class Jeddah-Riyadh one way fare which is not affordable for the common man. So if the low-cost airline comes and offers prices much cheaper than Saudia, definitely it will ease the burden for frequent travelers and the common people in the Kingdom.”
Zaheer Bhatt, supervisor at Travel & Transport Services (T&TS), said, “There is a need for such low-cost airlines because of the busy schedule and heavy air traffic in the Kingdom. As more such airlines are coming in the region such as in Sharjah and Kuwait, it is timely that Saudi Arabia also should have a similar airline.” He added that low-cost airline will boost travel market several folds in Saudi Arabia.
Al-Zeer said that “this new service will have a significant impact on Saudi Arabia in many areas, increasing the number of flights operating throughout the Kingdom, providing additional options for domestic travelers, generating new growth in the air travel market, creating new jobs for Saudi nationals, increasing tourism and generally positively impacting the Saudi economy.”
Al-Zeer said that his company will soon announce details of the deal which is being finalized for the acquisition of a fleet of aircraft to be employed in its new low-cost service.
NAS on Sunday announced an order for 10 Airbus A318 Elite business jets. The company is the largest private operator of business jets in the Middle East with 28 aircraft in its fleet today.
Al-Zeer explained that the company’s new low-cost solution, which will operate as an additional Strategic Business Unit within NAS, will commence its operation prior to summer 2006, and will initially service domestic routes in Saudi Arabia, before expanding into high-demand destinations in the Gulf and the Middle East at a later stage.
Regarding the pricing of the new service, Al-Zeer added that the company will ultimately take into consideration a number of variables, such as the chosen destinations, the date of travel, the capacity and the mode of payment, among others. “Prices of seats will vary depending on many factors,” said Al-Zeer and explained that typical low-cost airline tiered pricing, including advance booking and online payments, will guarantee a more economical seat price than last minute reservations.
“Like any low-cost airline, we will encourage travelers to plan their trips ahead of time, so that they are able to reap the financial benefits of the new service,” he noted.
We shall see.........
Bear 555
Khalil Hanware, Arab News
JEDDAH, 22 November 2005 — National Air Services (NAS), the largest and fastest-growing provider of VVIP and executive air transport services in the Middle East, announced yesterday plans to launch Saudi Arabia’s first low-cost airline before summer 2006.
The airline, yet to be named, will be the first privately owned domestic carrier to be established in the Kingdom, and the only carrier other than Saudi Arabian Airlines licensed to provide scheduled domestic services.
This announcement comes only four months after the company said it had been awarded the first private Part 121 Air Carrier Certificate ever to be issued by the Presidency of Civil Aviation in Saudi Arabia; and that it had simultaneously launched its Al Khayala VIP Shuttle Service. These announcements, made in July this year, came almost 15 months after the Supreme Economic Council of Saudi Arabia endorsed a recommendation that the Kingdom open up the domestic aviation market to national companies.
Mohammed Al-Zeer, president and CEO of NAS, speaking at a press conference during the 2005 Dubai Air Show yesterday, stressed the significance of what the company had been able to accomplish in recent months.
“NAS has undertaken a mammoth task in obtaining its full air carrier certification and breaking down barriers which had existed under a monopoly for 60 years in the Kingdom”, Al-Zeer said.
“These accomplishments, including the launching of both the Al Khayala service and this new airline, are a testament to the experience and expertise of every member of the NAS team, and a result of their hard work and dedication over the past two years. The writing of this new chapter in Middle East aviation also, of course, would not have been possible without the unwavering support we have received over the years from our board of directors and shareholders, who have believed in us since the beginning.”
S. Nihal, marketing manager of Bin Sammar International, told Arab News that this was a welcome sign. “Saudia is always fully booked throughout the year and it is very difficult for economy class travelers to find a seat, particularly during the busy periods of Haj and Ramadan. Once the low-cost airline is launched, definitely it is going to ease the pressure for travelers.”
He said “travelers generally use land transport such as SAPTCO and private buses and taxis for long journeys. All these transport means are time-consuming. When more avenues are available like low-cost airline, it will save time as well as money for the common people.”
Javed Taji, manager, Hatim Travel Agency, said “from the domestic point of view, it will be very attractive for people. For instance, at present, there is SR200 difference between business class and economy class Jeddah-Riyadh one way fare which is not affordable for the common man. So if the low-cost airline comes and offers prices much cheaper than Saudia, definitely it will ease the burden for frequent travelers and the common people in the Kingdom.”
Zaheer Bhatt, supervisor at Travel & Transport Services (T&TS), said, “There is a need for such low-cost airlines because of the busy schedule and heavy air traffic in the Kingdom. As more such airlines are coming in the region such as in Sharjah and Kuwait, it is timely that Saudi Arabia also should have a similar airline.” He added that low-cost airline will boost travel market several folds in Saudi Arabia.
Al-Zeer said that “this new service will have a significant impact on Saudi Arabia in many areas, increasing the number of flights operating throughout the Kingdom, providing additional options for domestic travelers, generating new growth in the air travel market, creating new jobs for Saudi nationals, increasing tourism and generally positively impacting the Saudi economy.”
Al-Zeer said that his company will soon announce details of the deal which is being finalized for the acquisition of a fleet of aircraft to be employed in its new low-cost service.
NAS on Sunday announced an order for 10 Airbus A318 Elite business jets. The company is the largest private operator of business jets in the Middle East with 28 aircraft in its fleet today.
Al-Zeer explained that the company’s new low-cost solution, which will operate as an additional Strategic Business Unit within NAS, will commence its operation prior to summer 2006, and will initially service domestic routes in Saudi Arabia, before expanding into high-demand destinations in the Gulf and the Middle East at a later stage.
Regarding the pricing of the new service, Al-Zeer added that the company will ultimately take into consideration a number of variables, such as the chosen destinations, the date of travel, the capacity and the mode of payment, among others. “Prices of seats will vary depending on many factors,” said Al-Zeer and explained that typical low-cost airline tiered pricing, including advance booking and online payments, will guarantee a more economical seat price than last minute reservations.
“Like any low-cost airline, we will encourage travelers to plan their trips ahead of time, so that they are able to reap the financial benefits of the new service,” he noted.
We shall see.........
Bear 555