sama update
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Join Date: May 2006
Location: saudi and the world
Age: 46
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sama update
Sama inside info the europeans are making hay while the sun shines
punctuality 89.5%
Revenue looks fairly good but forward bookings for Nov are dire. We have
just launched our latest sales promotion, 50% off our lowest fare (so
RUH-JED an incredible SAR50 vs Saudia SAR280!) and advertised in press,
with flyers, in travel agents etc. We need all staff to get behind this
campaign, target is 15,000 incremental passengers.
we have reduced the less profitable flying (like AHB and GIZ - for
winter), and put more capacity on our more profitable routes, ie JED. We
also launch the new PSO routes, We are looking at cargo uplifts on PSO routes too. (since when did u get cargo licence ??
The Hajj flights have now been loaded in the system
(16/17/18Dec to JED, 23/24/25Dec from JED), and these are being sold as
whole aircraft charters.
Andrew Cowen has been lobbying GACA to try to get a 'level playing field' for LCC airlines in Saudi Arabia. Oil prices have increased hugely, from USD50 to USD90+ per barrel, which is hitting us hard (fuel is 25-30% of our total costs, and rising fast). Combined with the domestic price cap, plus the start of the offpeak travel season, means we have serious and urgent work to do on increasing revenue and reducing costs (see my previous email). Andrew had an interesting comparison with Air Arabia. Our cost per seat is lower (a great achievement), but revenue per pax is just over half - and indication of how constrained we are by the domestic Saudi fares cap And an indication that we simply cant afford to buy or lease new aircraft.
Finance have been working really well, to try to improve our
cashflow position. asking for another xxx Mil from investors
A major push is underway on several fronts, to obtain charter
traffic rights to a number of regional international destinations. This
is in addition to the one international charter licence expected in the
next few days. So exciting and challenging times ahead.
Looking at several areas with ARAMCO. A corporate agreement,
them using our flights out-of-hours etc
punctuality 89.5%
Revenue looks fairly good but forward bookings for Nov are dire. We have
just launched our latest sales promotion, 50% off our lowest fare (so
RUH-JED an incredible SAR50 vs Saudia SAR280!) and advertised in press,
with flyers, in travel agents etc. We need all staff to get behind this
campaign, target is 15,000 incremental passengers.
we have reduced the less profitable flying (like AHB and GIZ - for
winter), and put more capacity on our more profitable routes, ie JED. We
also launch the new PSO routes, We are looking at cargo uplifts on PSO routes too. (since when did u get cargo licence ??
The Hajj flights have now been loaded in the system
(16/17/18Dec to JED, 23/24/25Dec from JED), and these are being sold as
whole aircraft charters.
Andrew Cowen has been lobbying GACA to try to get a 'level playing field' for LCC airlines in Saudi Arabia. Oil prices have increased hugely, from USD50 to USD90+ per barrel, which is hitting us hard (fuel is 25-30% of our total costs, and rising fast). Combined with the domestic price cap, plus the start of the offpeak travel season, means we have serious and urgent work to do on increasing revenue and reducing costs (see my previous email). Andrew had an interesting comparison with Air Arabia. Our cost per seat is lower (a great achievement), but revenue per pax is just over half - and indication of how constrained we are by the domestic Saudi fares cap And an indication that we simply cant afford to buy or lease new aircraft.
Finance have been working really well, to try to improve our
cashflow position. asking for another xxx Mil from investors
A major push is underway on several fronts, to obtain charter
traffic rights to a number of regional international destinations. This
is in addition to the one international charter licence expected in the
next few days. So exciting and challenging times ahead.
Looking at several areas with ARAMCO. A corporate agreement,
them using our flights out-of-hours etc
Join Date: Nov 1999
Location: "como todo buen piloto... mujeriego y borracho"
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Just because an airline is started, doesn't mean that it is destined for success. Fate has been kind to airlines in the Middle East, but it will be interesting to watch for how long. Not wishing ill on anybody, just an observation of business realities which until now, the region has seemingly been immune to.
