MSYYZ From Canada, joined Oct 2005, 851 posts, RR: 9 Posted (7 years 2 months 3 weeks 6 days 10 hours ago) and read 2039 times:
After Egypt Air , MEA and Royal Jordanian ,yet another Middle Eastern Airline is talking about Privatization .
The Supreme Economic Council (SEC) has approved the executive program to privatize Saudi Arabian Airlines, amongst other decisions taken by the SEC. Like endorsing the executive program for the expansion and upgrading of the Haj Terminal at King Abdul Aziz International Airport in Jeddah.
Saudi Arabian Airlines has already taken a series of steps for its privatization, currently, the airline is focusing on transforming non-core units including catering, ground handling services and maintenance as well as the Prince Sultan Aviation Academy in Jeddah, into commercial units and profit centers. The airline announced that to this date, it has completed one of the three phases of its privatization plan, which included studies on the airline's financial, administrative, operational and organizational aspect as well as restructuring of its administration, finance and operation.
During 2005, Saudia posted a record revenue of SR 14.6 billion, which is SR 1 billion more than the figure of 2004, and it also achieved a net profit SR 500 million. This comes after MS , MEA and RJ were all in the black with good profit in 2005 .
A300 From United States of America, joined May 2004, 453 posts, RR: 0 Reply 1, posted (7 years 2 months 3 weeks 6 days 10 hours ago) and read 2019 times:
Privatisation will only make sense if the aviation controls are relaxed in Saudi Arabia. It is very difficult for foreign airlines to compete. EK has only 5 RUH-DXB flights a week while SV has 14. Similarly, ME increased its RUH-BEY flights from 4 to 5 per week. They would like to go daily, but they cannot. LH has no rights on the DXB-MCT portion of its FRA-RUH-MCT flight. The fares are also high. There is no real competition here.
HiJazzey From Saudi Arabia, joined Sep 2005, 788 posts, RR: 1 Reply 3, posted (7 years 2 months 3 weeks 6 days 7 hours ago) and read 1949 times:
This is not new. The privatisation plan outlined above have been public for years now, but SV was seen dragging it's feet on this issue. Maybe the SEC will push this forward now.
As for aviation controls, I would love them to loosen, open skies even, but that isn't going to happen without reciprocation, and the other arab countries are just as bad. The examples listed above distort the picture. For example I could tell you that ME has more flights on the JED-BEY route than SV does. Doesn't give you the full picture.
HiJazzey From Saudi Arabia, joined Sep 2005, 788 posts, RR: 1 Reply 6, posted (7 years 2 months 3 weeks 6 days 6 hours ago) and read 1917 times:
Privatisation means they will be turned into a joint stock company and listed on the Saudi stock exchange. What percentage of the company will be made available at IPO, I don't know, but the government would no doubt have a significant stake in the company or at the very least a golden share. So a takeover by a foreign carrier would be unthinkable.
BTW, the business community in Saudi is composed mainly by the traditional merchant families, not the royal family.
KHI747 From United States of America, joined Oct 2000, 1613 posts, RR: 1 Reply 7, posted (7 years 2 months 3 weeks 5 days 20 hours ago) and read 1844 times:
This is great news and i think SV has so much unrealized potential as an airline that can only be fixed if its privatized.
As to how the airline would be privatized,they would offer it to a certain group of investors who in all probability would be from GCC only if not Saudi entirely. But i think someone like Prince Waleed bin Talal would be VERY interested in a privatization like this in the kingdom