JEDDAH, 17 May 2005 — Saudi Arabian Airlines is moving ahead with its plans to privatize some of its sectors. Dr. Khaled Ben-Bakr, director general of the airline, confirmed that the privatization process is proceeding according to the mechanisms approved by the airline’s board of directors. These procedures include a complete change of the financial, operational, legal and administrative structure of the airline based on studies conducted by international consulting companies.
The studies build on the general direction of the aviation industry and the best international practices and procedures to define the most suitable models - regionally and internationally - for Saudi Airlines present situation and future expectations. Among the most important focal points of the current restructuring is transforming the non-basic units to strategic commercial units and profitable centers.
These will include the catering, shipping, ground handling services, maintenance, and the resource management sector in addition to the Prince Sultan Academy of Aviation.
“We began with the catering sector because it is a complete profitable center, and are forming an executive board of directors for it to supervise the stages needed to prepare it for privatization,” said Dr. Ben-Bakr.
Another executive board of directors for the shipping sector was also formed and an administrative work team was appointed to supervise the procedures for transforming it a strategic profitable unit and another is preparing the ground services of the airline.
These units will initiate the commercial operating foundation and increase their attractiveness to investors, resulting in financial returns that will be used to develop the basic aviation sector and raise its economic value before privatizing it.
Committees and work teams were formed to specify the future goals and strategies for each sector in the institution to increase income, improve the financial situation, review expenses and improve services.
Dr. Ben-Bakr said that the company had achieved profits for the third year in a row, which indicates that its positive reaction to the needs of the next stage, and it has improved its services and technological activities such as electronic commerce and automatic booking and other on-ground and in-flight services.
In addition, the airline is focusing on developing its human resources by providing training to the staff at the Prince Sultan Academy of Aviation and supporting technical facilities. “All these achievements and capabilities will help us reach our future goals and keep our prominent position among the large international airlines and offer more marketing strategies and improve our services,” added Dr. Ben-Bakr.