Saudi Arabian Airlines signed five agreements to privatise its core aviation unit, establish a new company for ground services at all Saudi airports, finance its new fleet of aircraft, and manage the IPO of its catering company.
Khaled Al-Molhem, Director General of the national airline of Saudi Arabia, said the new privatisation agreements with Saudi and foreign companies were signed on the basis of a strategic plan, adding that it would improve the performance and services of the airline's different sectors.
The plan also envisions making Saudi Arabia the main center for commercial aircraft maintenance in the Middle East, said Crown Prince Sultan, Deputy Premier and Minister of Defense and Aviation, and Chairman of the Board of Directors of Saudi Airlines.
The first agreement aims to merge Saudi Airlines Ground Services Company with National Handling Services Company and Attar Ground Services Company to form a new company to provide ground services in all of the Kingdom's airports.
The second consultancy agreement with Samba Financial Group and BNP Paribas is to finance the airline's new fleet of aircraft.
The third accord was with Al-Ahli Capital and Morgan Stanley to privatise the core aviation unit while the fourth agreement was with Calyon Saudi Fransi to float part of Saudi Arabian Airlines Catering Company's shares for public subscription.
The fifth agreement aims at developing aircraft maintenance facilities at King Abdulaziz Airport in Jeddah.