JEDDAH, 27 May 2003 — Dr. Khaled Ben-Bakr, director-general of Saudi Arabian Airlines, said yesterday that the airline had not asked the Shoura Council to increase domestic fares in order to cover its losses.
“Saudia earns more than SR1.8 billion annually from international flights and that is enough to cover the airline’s losses on domestic flights,” he told Arab News.
Dr. Ben-Bakr made his statement when he was told that the consultative body opposed the move to increase domestic fares and wanted the airline instead to adopt other means of increasing revenue.
The debate on domestic fares comes at a time when the Shoura intends to present recommendations to the government to improve the airline’s financial situation before privatization. Dr. Ben-Bakr said the privatization process was progressing well without affecting its activities.
Meanwhile, sources close to the Shoura told Arab News that the council’s report to the government would focus on operational aspects of the airline in terms of employment, revenues and expenditures.
Saudia has canceled the additional fuel charges which it imposed during the US-led war on Iraq. Dr. Ben-Bakr said the cancellation was effective on May 19. He also said it was too early to operate flights to Baghdad because the airport there required considerable maintenance.
