JEDDAH, 7 June 2006 — Saudi Telecom Company’s former chief executive Khaled Al-Mulhim has been named the new director general of Saudi Arabian Airlines, replacing Khaled Ben-Bakr, who was removed from the position on his request, a royal decree said.
According to a report carried by the Saudi Press Agency, Custodian of the Two Holy Mosques King Abdullah made the new appointment on the recommendation of Crown Prince Sultan, who is also chairman of the carrier.
Analysts believe that the move would speed up the privatization of Saudia as Mulhim steered the telecom giant’s partial privatization. The STC floated a 30-percent stake in the company in 2003 when Mulhim was the company’s chief executive officer.
In a recent statement, Finance Minister Ibrahim Al-Assaf said Saudi Arabian Airlines is next in line for privatization, adding that it would take place before the sale of the third mobile phone license that was expected by the end of this year.
Reactions by Saudia employees were a mixture of sorrow and happiness on Ben-Bakr’s departure but the majority of them said it was about time. Although it was under his management that the airline was beginning to proceed toward privatization, which is seen as a good thing, many of the employees who were being affected negatively by the process felt angry and betrayed.
“In the catering department, problems had arisen with the managers of this department and they noticed a decrease in their salaries so they complained all the way to the king,” said a Saudia employee to Arab News.
There were other complaints from other departments.
However, it was not just the job and financial losses that they hold against Ben-Bakr but his attitude toward the employees. Ben-Bakr’s four-year tenure was renewed twice, and again renewed last year, which was unprecedented; and for employees it was too long.
“I’m so happy he left. Everyone here is celebrating,” said a management level employee.
“Finally. Rumors have been circulating for a while now that he will be removed,” said another.
Another managerial level employee said that even though he managed to turn the company around from red to black, the morale among the employees was low.
Mulhim left the STC in February in preparation to take over the top job at Saudia, one source told Arab News. He was tapped due to his success in turning STC into a profitable, partially privatized company.
Talking to Al-Arabiya news channel, Mulhim said that it is too early for him to set any priorities before reviewing all the reports. However, he stated that he would go ahead with the privatization plan and work for achieving customer satisfaction.
“There has to be a clear and unified plan for this transitional phase and making the airline efficient and competitive. It should have added value when offering the company to the market. Competition is good for improving services and the best way to restructure the company with a comprehensive approach,” he said.
The airline industry in general faces many challenges with the increase in fuel prices and other expenses, but Mulhim said an airline is important not only for making profits but also for boosting economic development since it is related to several other services and trade.
