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How is the CRM in the company?

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I guess CRM does not exist over there

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Its really just a fleet renewal with no expansion.

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Arab News - 13 March, 2010
Author: Tariq A. Al-Maeena

Skytrax, an aviation standards monitoring agency, has published its World Top 10 Airlines in 2009. Among the airlines surveyed were carriers from all continents of the globe.

The survey methodology, widely accepted by all leading airlines, was operated over an 8-month period (August 2008 to March 2009), during which time 16.2 million air travelers completed a wide range of survey nominations for the Airline of the Year title, along with regional and other award categories.

The survey data was collated from a variety of input sources, including passenger interviews completed online and via e-mail, business research group/travel panel interviews, corporate travel questionnaire/interviews, telephone interviews and selective passenger surveys.

The Gulf carriers such as Etihad and Qatar Airways, new entrants to the field, figured prominently in the list, led by Emirates who's been in the business slightly longer. These airlines figured prominently in the Top 10 by virtue of their consistent commitment to excellence. For the record, Emirates is 25 years old, Qatar Airways 17 years, and Etihad an airline barely 7 years in operation.

But what of the heavyweight in the region, Saudi Arabian Airlines, our national carrier with over 64 years in service? An airline seemingly destined for success by virtue of a budget generously provided by the government, an enviously guaranteed annual market in Haj and Umrah traffic, and a population size that would easily engulf the rest of the GCC several times over.

Sadly, there were no accolades for Saudia in the recent survey. Why, one wonders. Why should this carrier not have figured among the Top 30 if not the Top 10?

While it took a relatively short time, plenty of investment and lots of hard work for the featured GCC countries to build their modern aviation infrastructure, Saudia seems to have chosen to take several steps backward.

A privatization plan, initially announced in the early 1990s was allowed to meander aimlessly in the following years. Some would say this was part of a concerted plan to continue milking the corporate cow. And in the years of the preceding CEO at the helm of the airline, the organization took the form of a country club where entry to executive levels was granted not on one's professional abilities, but rather on how strong their connections were.

Key positions were staffed by individuals with very little knowledge of global aviation strategy or customer service, a primary indicator of the airline's health.

They were simply public servants who manipulated the organization's manuals of procedures and benefits to extract the most for themselves, at the cost to their customers. After all, money from the government was flowing in on an annual basis, and thus the "abhorrent" concept of privatization was relegated to an afterthought.

Accountability did not exist, and the organization was run much like what we have witnessed recently with our municipality in the wake of the floods. In the midst of such a corrosive corporate identity, some of the conscientious elements within the organization chose to either leave or not participate in such a caustic atmosphere.

As a result, morale sank to a noticeable low, leading to poor service across the organization.

Things haven't changed much since the new CEO took over a few years ago. The one noticeable effect was that there was a spurt of promotions at key levels of the very individuals who contributed to the downward slide. Reward for good work seems to be an alien culture in this airline.

Accountability still remains unfamiliar, while executives increase their perks at the expense of the paying public. Morale among the staff has sunk deeper today, and while some progress has been made on the privatization front, it certainly does not make up for an attractive investment.

Talk to any senior executive in this airline and he will readily sound off on how glorious his organization is. But talk to the staff and you hear a totally different story.

Or better yet, try your hand at the simple task of booking a seat, or having your flight leave on time.

Surveys such as those published by Skytrax are a valuable tool of letting airline professionals know their place among their peers, and strive to improve. With Saudia, such assessments are best relegated to the dustbin. After all, why kill the cash cow?

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an enviously guaranteed annual market in Haj and Umrah traffic, and a population size that would easily engulf the rest of the GCC several times over.

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JEDDAH: Saudi Arabian Airlines signed five landmark agreements Sunday to privatize its core aviation unit, establish a new company for ground services at all Saudi airports, finance its new fleet of aircraft and manage the IPO of its catering company.

The agreements were signed in the presence of Crown Prince Sultan, deputy premier and minister of defense and aviation, and chairman of the board of directors of Saudi Airlines during a ceremony in Riyadh.

Prince Sultan commended the national carrier’s achievements in terms of privatizing key sectors, improving services and transporting a record number of passengers and pilgrims. He urged Saudia officials to exert greater efforts in the service of citizens and the guests of God who come for Haj and Umrah.

Khaled Al-Molhem, director general of the airline, said the new privatization agreements with Saudi and foreign companies were signed on the basis of a strategic plan, adding that it would improve the performance and services of the airline’s different sectors.

The Supreme Economic Council, which is chaired by Custodian of the Two Holy Mosques King Abdullah, has approved the airline’s privatization program. Al-Molhem said the privatization would strengthen the Kingdom’s air transport industry and services. “The plan also envisions making Saudi Arabia the main center for commercial aircraft maintenance in the Middle East,” he said. Saudia’s privatization plan aims to cope with the tremendous progress achieved by the Kingdom in different economic sectors.

The first agreement, which was signed Sunday, aims to merge Saudi Airlines Ground Services Company with National Handling Services Company and Attar Ground Services Company to form a new company to provide ground services in all of the Kingdom’s airports.

The second consultancy agreement with Samba Financial Group and BNP Paribas is to finance the airline’s new fleet of aircraft. The third accord was with Al-Ahli Capital and Morgan Stanley to privatize the core aviation unit while the fourth agreement was with Calyon Saudi Fransi to float part of Saudi Arabian Airlines Catering Company’s shares for public subscription. The fifth agreement aims at developing aircraft maintenance facilities at King Abdulaziz Airport in Jeddah.

Prince Sultan later chaired a meeting of the airline’s board of directors where Al-Molhem explained the measures taken by the management to privatize the organization’s strategic units. He said the airline’s revenue rose by nine percent in 2009 to reach SR18.15 billion, registering an increase of over SR1.5 billion compared to 2008 results.

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They take non type rated people, bond them, type them and generally lose them once they stay long enough to get the bond back.

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