RIYADH, 26 December 2005 — A group of Saudi investors will launch next year a low-fare airline in response to the growing demand for airline services within the Kingdom and the region.
This was announced by Prince Bandar ibn Khalid Al-Faisal, chairman, Investment Enterprises Ltd., who said: “Our preparations for the operational launch are proceeding extremely well, and a contract has been signed with Mango Aviation Partners, a firm that specializes in the set-up and management of low fare airline operations. It will act as a consultant to conduct economic and technical consumer research to establish the company. Investment Enterprises are being advised by Al-Khabeer Financial Advisors and the Law Firm of Mohammed Al-Sheikh”.
The consultation company, according to him, carried out extensive consumer research that has shown wide public support for the launch of a new airline alongside Saudi Arabian Airlines. Crown Prince Sultan, deputy premier and minister of defense and aviation, said on Saturday night, at a press conference at the King Faisal Foundation, that the Kingdom would welcome a local airline on the aviation scene, besides Saudia. Speaking further, Prince Bandar said: “Our preparations for the establishment and operational launch of the company were subject to meeting the specific regulatory approval requirements of the Kingdom and international safety criteria, and we are planning to commence services in the summer of 2006”.
He said the launch of the company was made possible by the Saudi government, which has approved private sector investment in air transport. “We are very confident of the new company’s success, and its establishment has been widely welcomed by a number of elite Saudi investors whom we offered strategic partnership in the project,” Prince Bandar observed.
According to him, there are strong indications that airline services in the Kingdom and the region are projected to maintain their record-breaking growth cycle fueled by the uptrend in the Saudi economy, the meteoric bounce of the oil market and the strong showing of the non-oil sector. Together, they have given a shot in the arm to the travel trade.
Prince Bandar pointed out that the new economic airline company will be a valuable addition to the private sector efforts to boost the economy. Besides providing highly competitive rates, it also caters to the needs of a wide cross-section of the people in the Kingdom or other destinations within the airline’s network. A significant number of new job opportunities are expected to be created in the Kingdom by the launch of the new airline, he added.
