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Saudi Arabian Airlines & WTO  
User currently offlineIKAR From Lebanon, joined Sep 2005, 7 posts, RR: 0
Posted (8 years 9 months 1 day 9 hours ago) and read 4277 times:

Could you please answer the following questions based on your opinion:

As Saudi Arabia gets closer to accession into the WTO, what will be the impact on aviation within the kingdom and more specially,
what will be the impact on Saudi Arabian Airlines?
Will this impact be big?
Will the aviation market within the kingdom significantly change and how?
Will SV be negatively influenced or will it gain from WTO ruling?
As well, what will be the impact of privatization for Saudi Arabian Airlines?

Thanks

9 replies: All unread, jump to last
 
User currently offlineLaxintl From United States of America, joined May 2000, 25403 posts, RR: 49
Reply 1, posted (8 years 9 months 1 day 8 hours ago) and read 4258 times:

Even with the entry of Saudi Arabia into the WTO its unlikely traffic for Saudia will increase.

The total ban on tourism, along with the need to secure visa's for even in transit flight connections limits Saudia's traffic base to primarily Kingdom related O&D business and family traffic.

If the transit visa requirement was lifted Saudia could at the very least competitively chase after transfer traffic that now flies on airlines like Emirates.



From the desert to the sea, to all of Southern California
User currently offlineEurostarVA From Bahrain, joined May 2002, 1296 posts, RR: 7
Reply 2, posted (8 years 9 months 1 day 6 hours ago) and read 4210 times:

The crucial WTO accomplishment in Saudi Arabia is the liberalization of the domestic airline industry and this has resulted already in 1 privately owned airline (Khayala) and another one on the way, which will be the Kingdom's first low-cost carrier (announced in the Dubai Air Show).

There is no doubt in my mind that the next few years will witness a boom in domestic airline travel, and in turn, thousands of new jobs will be created for the unemployed.

Quoting IKAR (Thread starter):
what will be the impact on Saudi Arabian Airlines?

Certainly more competition, but why is that bad? It's about time they get their house in order, to provide a minimum level of passenger comfort and convenience. Their flights are absolutely ALWAYS full and no one seems to know why no additional flights are operated. Customer service on the ground?? FORGET IT, logic is defied here with SV employees themselves expecting service from customers!!

Quoting IKAR (Thread starter):
Will the aviation market within the kingdom significantly change and how?

Definitely. Travelers will have more choice and value for money. Competition will enhance service levels and passenger expectations will grow.

Quoting IKAR (Thread starter):
Will SV be negatively influenced or will it gain from WTO ruling?

I think the immediate effect is negative but on the long run, the new operating conditions will only provide a wake-up call to SV.

Quoting IKAR (Thread starter):
As well, what will be the impact of privatization for Saudi Arabian Airlines

I don't think there is considerable negative impact. There is an abundance of capital in Saudi Arabia and the booming gulf in general and people are always crazed-hungry for new Public Offerings and public listings, so I don't think it will be a problem on a domestic level. I'm not so sure about a foreign strategic investor, it may be possible now with the WTO accession but I expect a foreign ownership cap.



If there is a will, there is a way
User currently offlineQutaiba From Kuwait, joined Dec 2005, 47 posts, RR: 0
Reply 3, posted (8 years 9 months 1 day 5 hours ago) and read 4198 times:

Hello IKAR

I believe it was mentioned in the news that KSA has been accepted with a full membership in the WTO, and some of what I know (and may be wrong now) is that

2.Depends on the pace with which KSA applies WTO regulations on SOE’s. May be SV is high on the list, but you’ve got to keep in mind that SV is a very significant SOE and keeping a viable flag carrier is probably essential in the mind of KSA policy makers.

3.I would think not if (1) is applied, unless KSA also conforms to the open skies aspects of the WTO.

4.I read somewhere, and quite a while ago, that a group of Saudi Business men has approached the government on buying all the older SV fleet if they are allowed full domestic operations, which is understandably something SV would not readily give up.

5.That’s a tough one to answer, if you’d consider that airlines operate as part of the overall commerce.

6.I also remember, the Saudi Airline privatization study/plan was made by KPMG, and last I know of is that they recommended SV privatization while maintaining monopoly status.

Best wishes for a happy new year

[Edited 2005-12-25 11:42:09]


When the tide comes in, all ships will rise
User currently offlineHiJazzey From Saudi Arabia, joined Sep 2005, 869 posts, RR: 1
Reply 4, posted (8 years 9 months 21 hours ago) and read 4063 times:

WTO accession shouldn't affect SV directly. Saudi Arabia hasn't signed up to any open skies agreement as far as I know, nor was aviation an issue in the bilateral trade agreements with the top trading partners. The only thing that would have an effect, is the change in immigration policy (it will become easier to get a visa to Saudi Arabia, in some cases you will be able to get it from the airport).

Not that this isn't a period of change for SV . The government is commited to privatisation and economic liberalisation, and will not wait forever for Saudia to get their house in order.


User currently offlineOD777 From Lebanon, joined Sep 2005, 10 posts, RR: 0
Reply 5, posted (8 years 9 months 21 hours ago) and read 4048 times:

BTW any news regarding their embraer deliveries ?
Any potential regional routes or just local flight with in the KSA ?
Regards
Milad


User currently offlineHiJazzey From Saudi Arabia, joined Sep 2005, 869 posts, RR: 1
Reply 6, posted (8 years 9 months 19 hours ago) and read 4017 times:

Hi Milad

They've already received the first one, and they should be getting one a month from now on.

As to routes, I think domestic for now. They might do some regional routes, but they are limited to overland routes.


User currently offlineMalaysia From United States of America, joined Nov 1999, 3352 posts, RR: 0
Reply 7, posted (8 years 9 months 13 hours ago) and read 3942 times:

I have flown as a transit pax via JED and RUH between IAD and BKK/MNL often, but didnt need a visa, cause it was under 12 hours. if its under 12 hours, you dont need transit visa usually, but the catch is most SV flights have bad transit times, so most would end up needing the visa and honesty with EK, they dont make people layover in DXB for 12 hours.

if SV had more reliable connection banks, they could easily take on more transit pax without a transit visa, especially if they flew via RUH, a much better transit place than that umm BLACK BOX in JED. Such a sad place for transit.



There Are Those Who Believe That There May Yet Be Other Airlines Who Even Now Fight To Survive Beyond The Heavens
User currently offlineQutaiba From Kuwait, joined Dec 2005, 47 posts, RR: 0
Reply 8, posted (8 years 9 months 10 hours ago) and read 3898 times:

Hello HiJazzey,

Do you think the Saudi LCC will operate similar to those in US/Europe where they seem to operate mainly from secondary airports?


Regards
Quatiba



When the tide comes in, all ships will rise
User currently offlineSV777KiloAlpha From Saudi Arabia, joined Dec 2003, 267 posts, RR: 2
Reply 9, posted (8 years 8 months 3 weeks 21 hours ago) and read 3775 times:

Hi Qutaiba

I don't believe so. When LCCs start in Saudi Arabia, they will use the same airports used by SV. I don't think there will be any restrictions on them by the Civil Aviation Authority to use specific airports.

In the US and Europe, many cities have more than one major airport, so LCCs can pick the most economical for it to use.

 Wink
KiloAlpha



PPL since 2006
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