Speaking to reporters after signing the agreement with SkyTeam's Chairman Leo van Wijk and top executives of the alliance's 13 member airlines here on Monday night, Al-Molhem said the move would increase Saudia's annual income substantially.
"The SkyTeam network provides our customers with excellent connections to most parts of the world," he said. "Through the exchange of services and knowledge between all member airlines, Saudi Arabian Airlines can achieve qualitative improvements in services made available to our customers," he added.
The new agreement will interface with Saudi Arabian Airlines' major hubs of Riyadh, Jeddah and Dammam, enabling travelers to connect with new destinations in the Arabian Peninsula, the Indian subcontinent and Northern Africa.
SkyTeam partners in return will have access to new customers from the region as Saudia offers direct flights to Europe, Asia, Africa and the USA. Customers can transfer at SkyTeam hubs such as Paris, Rome, Nairobi and New York en route to destinations in Europe, Africa and North and South America.
Delta Airlines, a leading member of SkyTeam welcomed the agreement. "Saudi Arabian's growing hub in Riyadh and extensive network throughout the Middle East will bring Delta customers greater access to destinations across one of the world's most important economic regions," said Charlie Pappas, Delta's vice president. "We are honored that Saudi Arabian has chosen to link its future growth and success with Delta and our SkyTeam partners, while bringing our alliance greater access to destinations across the Middle East," Pappas said.
Al-Molhem described the agreement as a major achievement for Saudi Arabian Airlines. He said Saudia would become a full member of the alliance within a year. "We are expecting tremendous expansion as a result of this agreement," he added. Al-Molhem said frequent travelers and business passengers would enjoy unlimited facilities at SkyTeam's 420 lounges worldwide. SkyTeam offers its 385 million annual passengers a worldwide system of over 12,500 daily flights to 898 destinations in 169 countries.
He said Saudi Arabia was able to reach this agreement after fulfilling the alliance's seamless conditions. "During the last five years we have achieved tremendous progress in terms of fleet modernization, administrative and network restructuring and provision of various services through the website," he explained. "We'll continue our efforts to improve services. We consider this day one... it will be followed by day two and three and so on."
Chairman Van Wijk noted the economic importance of Saudi Arabia and said that Saudia has been a significant player in the Middle East. "It covers a considerable part of the Arabian Peninsula and the Indian subcontinent. Its membership in SkyTeam will enable us to compete more efficiently within the region."
Speaking about major achievements of SkyTeam during the past 10 years, Van Wijk said the alliance was focusing on expanding its global network to provide better connectivity. "We have now major carriers of US and Europe in our team. The agreement with Saudia will enhance our reach to North Africa, the Gulf and India," he said.
He said the alliance is now trying to fill up the white spots in its global map. He said the joining of new members such as China Eastern, China Airlines, Shanghai Airlines, Japan Airlines and Garuda would strengthen the alliance's global position. There are three alliances that account for 70 percent of global travel business with SkyTeam taking a market share of 24 percent, the chairman said.
Saudi Arabian Airlines is currently concentrating on its four-year turnaround program, scheduled to be completed by 2013. Key elements of this plan include modernization of its infrastructure, restructuring of its domestic and international network and implementing its fleet modernization plan through the purchase of 88 of the most advanced aircraft from the Boeing and Airbus families.
Top executives of 13 SkyTeam members — Aeroflot, Aeroméxico, Air Europa, Air France, Alitalia, China Southern, Czech Airlines, Delta Air Lines, Kenya Airways, KLM Royal Dutch Airlines, Korean Air, TAROM and Vietnam Airlines -- attended ceremony.
