Low Cost Saudi Airlines Emerge
It started with the ending of
60-year monopoly held by state-owned Saudi Arabian Airlines on
domestic routes... and took off with the country's first
budget airlines, Sama and National Aviation Service (NAS).
Sama's first flight from Dammam to Jeddah March 15 came three
months after receiving its license from the General Authority of
Civil Aviation.
That inaugural flight came three week after NAS began commercial
flights with three Airbus planes between Jeddah and Riyadh.
Flights to Media commence March 31, to be followed shortly with
flights to Jizan and Gurayat.
As reported by AME Info, NAS has an ambitious strategy. It plans
to serve all of the country's airports by 2011, increasing its
fleet to 19 aircraft, serving 10 million passengers, and offering
642 weekly departures.
Sama, headquartered at Dammam, launched with three Boeing
148-seat 737 aircraft for routes between Dammam, Riyadh, Jeddah,
Medina, Gizan. Another five aircraft will be put into service by
the end of 2007, according to the company, with a planned fleet of
35 aircraft within five years.
Profitability is the name of the game for privately-owned
carriers, that operate in a market where the national airline
subsidized domestic fares... and still encountered losses on most
of its 26 domestic routes.
NAS Executive Director Mohammed Al-Zeir is not worried, however,
claiming the investment is sound because the Kingdom's aviation
market is the largest in the Middle East.
No Frills
In moves not unlike
that seen in the US, both carriers eliminated frills like in-flight
refreshments and other complimentary services, though these can be
purchased if required.
"Simply Fly" Sama and NAS have also eliminated traditional
ticket methods, allowing passengers to book and pay for seats on
the Web and through ATMs, over the counter at banks, as well as
through travel agents and other outlets.
Sama's Chief Executive Andrew Cowen said that passengers can fly
from Dammam to Riyadh for as little as $26; the earlier a booking
is made, particularly online, the less expensive the
fare.
NAS Chief Executive Peter Griffiths said, "the earlier you book,
the less you pay, particularly if you pay online. What we are
trying to do is fill the aircraft as quickly as possible."
NAS also operates an executive jet network as well as its
exclusive business-class Al-Khayala airline and is planning for an
initial public offering within two years, he said.