mutt
16th Jun 2003, 19:14
Saudi Arabia yesterday opened the Kingdom’s vast domestic aviation sector for competition among national companies, ending decades of monopoly by the national carrier Saudi Arabian Airlines.
The Supreme Economic Council (SEC), has approved the opening up of the domestic air transport sector to national companies. The opening of the Saudi aviation sector comes amid complaints by passengers that the national carrier was not operating enough domestic flights and counter-claims by the airline that it was incurring losses in the domestic market. State-owned Saudi Arabian Airlines operates a fleet of some 120 planes to a number of world destinations and makes most of its earnings from international flights. Saudia earns more than SR1.8 billion annually from these international flights.
In a recent interview, Prince Fahd ibn Abdullah, assistant minister for civil aviation, indicated the prospects for allowing national companies to operate domestic flights. “At present it (Saudia) is the only airline to provide domestic service. In future, other national airlines could be set up,” he told Okaz.
The SEC decision came at a time when studies are being conducted to privatize Saudi Arabian Airlines. “Studies on the privatization program will be completed shortly to consider partial privatization of the airline,” Prince Fahd told the Arabic daily. “It will have a positive effect on the airline’s sales and improve its performance, and these will have a very good impact,” he added.
Saudia operates to 26 airports in the Kingdom at heavily subsidized fares, which adversely impact its overall revenues.
Khaled Ben-Bakr, director-general of the airline, said Saudia was covering the losses on domestic flights by its huge revenues from international flights.
Anyone want to buy some old Tristars??????
Mutt.
The Supreme Economic Council (SEC), has approved the opening up of the domestic air transport sector to national companies. The opening of the Saudi aviation sector comes amid complaints by passengers that the national carrier was not operating enough domestic flights and counter-claims by the airline that it was incurring losses in the domestic market. State-owned Saudi Arabian Airlines operates a fleet of some 120 planes to a number of world destinations and makes most of its earnings from international flights. Saudia earns more than SR1.8 billion annually from these international flights.
In a recent interview, Prince Fahd ibn Abdullah, assistant minister for civil aviation, indicated the prospects for allowing national companies to operate domestic flights. “At present it (Saudia) is the only airline to provide domestic service. In future, other national airlines could be set up,” he told Okaz.
The SEC decision came at a time when studies are being conducted to privatize Saudi Arabian Airlines. “Studies on the privatization program will be completed shortly to consider partial privatization of the airline,” Prince Fahd told the Arabic daily. “It will have a positive effect on the airline’s sales and improve its performance, and these will have a very good impact,” he added.
Saudia operates to 26 airports in the Kingdom at heavily subsidized fares, which adversely impact its overall revenues.
Khaled Ben-Bakr, director-general of the airline, said Saudia was covering the losses on domestic flights by its huge revenues from international flights.
Anyone want to buy some old Tristars??????
Mutt.