RIYADH, 19 January — Dr. Ali Al-Khalaf, president of the Civil Aviation Authority said it was impossible for the private sector to launch an airline to compete against Saudi Airlines in terms of rates and quality of service in the domestic service sector.
Speaking to Asharq Al-Awsat, Al-Khalaf said: It is virually impossible for any other private airline company to compete with Saudia in the country's internal sector with Saudia' huge investments, the huge number of staff exceeding 25,000 and its operation system. However, there are feasibility studies going on to privatize Saudia as there is nothing to prevent the liberalization of the domestic air-traffic market if the legal, administrative and opeational environment required for the privatization is in place. The redundant manpower will be a major issue to be faced when the airlines is privatized, Al-Khalaf pointed out.
Saudia airlines is offering a reasonable ticket tariff which a would-be competitors would not be able to do. In fact, competitors are relevant in a market where they will end the monopoly with cheaper services and better services. On the other hand, the current domestic ticket fairs, which are less than the actual cost of the services, are heavily subsidized by the government. He also pointed out to the excellent quality of the fleet maintained, the high standard of safety by Saudi Airlines and the in-flight passenger service which are ranked among the best in the world. Customers are the beneficiaries of such services at a lesser price while no private company will be capable of achieving such high services.
Al-Khalaf also disclosed that the current scheme to develop the King Abdul Aziz International Airport in Jeddah also included the replacement of the system of luxury coaches carrying passengers from departure lounges to the aircraft and back with new services. New methods such as mobile gangways or bridges which provide direct access to the plane from the waiting lounges are planned.
In his view the major obstacle in the privatization of a government establishment is the transfer of the staff from one sector to the other protecting all their rights and the elimination of the redundant employees. Therefore, the privatization process is to done after proper study with special consideration for the excess workforce and with a clear perception on the ways to compensate them and rehabilitating them in a fitting manner.
Al-Madinah reported from Makkah: The Urban Planning Department in the Makkah Municpality has completed the required studies on the site for the proposed Makkah International airport. Abdulah Bukhari, director general of the urban planning said the airport would be situated to the south of the Jeddah-Jizan highway while a bridge will link it with the Jeddah-Makkah highway. The site was selected with the help of experts from the King Abdul Aziz University in Jeddah and the specialized aeronautical engineers. The proposed airport will be double the size of Jeddah's King Abdul Aziz International Airport. The new airport, which will be international, will be situated outside the limits of the holy city as required by the religious regulations.
The ground is currently being prepared to suit the construction of the airport while the required documents have been handed to the Presidency of the Civil Aviation in Jeddah to complete the formalities. The service of some international consultancy is also likely to be sought, the newspaper reported.
