RIYADH, 15 June 2006 — The Al-Tayyar Group, which hopes to launch its private airline early next year, has put on hold the flotation of its IPO (Initial Public Offering) due to the volatility of the Saudi stock market.
“The date for public subscription to our shares will be fixed as soon as share prices begin to stabilize,” Dr. Nasser Al-Tayyar, chairman of the Al-Tayyar Group, told Arab News. Some 27 major investors in the Kingdom have pooled their resources for the launch of the new venture.
Asked about the status of the private airline that is expected to operate from the Riyadh region, he said that the General Presidency of Civil Aviation (GPCA) will announce their decision by the end of this year. Two licenses will be issued — one each for Riyadh and Dammam — for the operation of private airlines. The Al-Tayyar Group hopes to win the license for the Riyadh sector.
The airline to be named the Al-Tayyar Airline will be run by a newly constituted company, The Al-Tayyar Aviation Co., which will have an initial capital of $ 50 million. Its share capital will be increased through an IPO at a later stage.
A-Tayyar said the GPCA has started receiving applications, for which the last date of submission is the end of June. “After that, it will start examining technical and financial data turned in by the applicants. If we get the license, we’ll launch our airline by the first quarter of 2007. We shall operate scheduled rather than chartered flights,” he added.
Al-Tayyar said that initially they will lease three aircraft under a phased program, with the last one to be delivered before 2009. “We shall also buy ten aircrafts either from Boeing or Airbus, depending on our final decision. We’re negotiating with both airline manufacturers.”
On the question of the flight route, he said the airline would be free to operate on international routes after it successfully completes the two-year trial period. “In the meantime, we have started collecting CVs of applicants wishing to work for our airline. From the CVs collected, we’ll short-list the candidates for interviews.”
The Al-Tayyar Group, Dr.Nasser pointed out, is the largest travel and tourism operator in the Middle East with a network of 200 branch offices in the Kingdom in addition to overseas branches in Egypt, Canada, India, Thailand and Sudan. “We shall be expanding our services starting with Malaysia, Abu Dhabi and Sharjah,” said Al-Tayyar.
The chairman also referred to his “ well-trained staff, reservation counters, and a host of other facilities”. “All we need is a license to become operational at short notice. The new airline will be catering to the needs of the budget-conscious traveler, including both Saudis and expatriates,” he added.
