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.

FMI: www.nas.com.kw, www.flysama.com, www.gcaa.ae