RIYADH, 24 July 2006 — Sama, the new low-budget Saudi airline, has signed a SR453 million aircraft maintenance and engineering contract with SR Technics of Switzerland, indicating that the company will be operating fully-fledged in the near future. Sama’s consultants, Mango Aviation, which specializes in the start-up and management of low fare airlines the world over, negotiated the five-year contract.
Prince Bander ibn Khalid Al-Faisal, chairman of the Sama board of directors, said here yesterday, “We in Sama are striving to achieve the highest standards of safety and security in the maintenance of our aircraft. This is the logic behind concluding this contract with SR Technics. They are world leaders in this field and we want to ensure the best possible care. Safety and security is a top priority.”
As Saudi Arabia’s first low-cost airline, Sama plans to begin flying within months and expects to carry at least half a million passengers by the end of the year. Sama says the contract reinforces Sama’s commitment to maintaining the highest standards of safety and security for its passengers. The aviation contract will secure all necessary technical support for daily engineering and maintenance of Sama’s eventual 35 aircraft operation.
Referring to the contract with SR Technics, Sama officials said that the Swiss firm, an ISO 9001 certified company, is widely experienced in aircraft maintenance. SR Technics today conducts maintenance of over 750 aircraft through contracts with a number of international airlines. In his remarks, Tim Talat, deputy CEO of SR Technics Corporate Solutions, said, “Sama represented a major opportunity for SR Technics to confirm its leadership capabilities in providing integrated solutions for the Gulf airlines companies.”
Talat added, “We are confident of the bright future of the aviation business in the region and look forward to providing the best services possible to support Sama development in the Middle East.”
According to reports, Sama will lease up to seven Boeing 737 aircraft by December this year to tap the lucrative domestic market before starting regional services following approval from the regulatory authorities.
According to reports “the aviation market in Saudi Arabia is important, with a population of more than 25 million and very strong demand from a customer base left with little choice in terms of prices.” Saudi authorities are gradually liberalizing air transport services by opening domestic flights to private investors. The Kingdom also plans to privatize the flagship carrier Saudi Arabian Airlines.
Sama has been founded by Investment Enterprises, which is chaired by Prince Bandar. Sama will begin flying mainly between Riyadh, Dammam and Jeddah, carrying frequent travelers and pilgrims. The airline aims to reach 10 million passengers by 2010 from half a million by the end of December 2006. The company will directly employ 350 people in its first year and 1,200 by the end of 2010.
Sama officials have reportedly said that within a few years the company would offer investors an equity stake that will be listed on the Saudi bourse.