JEDDAH, 28 April 2005 — Saudi Arabian Airlines made a record revenue of more than SR14 billion and profit of SR440 million last year, according to Dr. Khaled Ben-Bakr, its director general. “For the first time, Saudia will be able to finance its new aircraft purchases by itself thanks to this good performance,” he said.

Speaking to reporters after signing a deal in Riyadh with Mauricio Botelho, president and CEO of Brazil’s Embraer aircraft company to purchase 15 new planes, Ben-Bakr said the number of Haj pilgrims transported by Saudia rose by 63 percent last year to more than a million pilgrims.

The signing ceremony was officiated by Prince Sultan, second deputy premier and minister of defense and aviation, and chairman of Saudi Arabian Airlines. Prince Fahd ibn Abdullah, assistant minister of defense and aviation for civil aviation, and top Saudia officials also attended the function.

Ben-Bakr described the new aircraft deal as the crowning point of Saudia’s achievements. The Saudia chief did not disclose the value of the deal but Reuters estimated it at around $400 million quoting the Brazilian firm. The deal includes establishment of a maintenance center, the first of its kind in the Middle East. Prince Sultan was given a visual presentation of the new Embraer 170, which according to Dr. Ben-Bakr, is a technically advanced aircraft, which is manufactured with the support of specialized international companies including American, Japanese, French and Spanish firms.

As per the deal, Saudia will receive the first two aircraft in December and another two in January, Ben-Bakr said. “Later on we’ll receive one aircraft every month until all the 15 planes are delivered,” the Saudi Press Agency quoted the director general as saying.

“Embraer’s new jet will provide Saudi Arabian Airlines with the possibility of expanding our domestic and regional flights,” said Ben-Bakr. The national carrier will use the Embraer to add frequencies on existing regional and domestic flights and eventually develop mini-hubs in the northern city of Hail and the southern resort city of Abha.

The Saudi Airlines configuration for the aircraft, which has wide isle and high ceiling, includes 66 seats, six first class seats and 60 guest class seats. “This is a small aircraft carrying 66 passengers making it suitable for domestic flights and Embraer specializes in manufacturing this type of aircraft,” said Abdul Aziz Al-Tamimi, PR assistant director.

Spelling out the airline’s achievements over the past five years, Ben-Bakr said the number of passengers carried by Saudia rose from 12 million in 2000 to 14 million in 2002 and 2003 and to 15 million last year. He hoped the figure would cross 16 million this year. Saudia’s Haj service witnessed tremendous progress over the past years as it now transports pilgrims from 89 international stations, Ben-Bakr said. “The number of Umrah pilgrims transported by the airline rose by 121 percent from 800,000 in 1999 to 1.8 million last year,” he added.

Referring to financial performance, Ben-Bakr said the airline made its first record revenue of over SR13 billion in 2002 when it realized its first operational profit of SR117 million. “The profit then doubled to SR253 million in 2003 and to SR440 million in 2004,” he explained.