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Saudi Airlines criticises domestic price caps

24-Mar-2011 12:51 PM

Saudi Arabian Airlines director general Khaled Al-Molhem has criticised price caps on domestic flights (Arabian Supply Chain, 23-Mar-2011). “There has been no change in domestic ticket fares for the last 16 years. Prices of everything have gone up and the salaries of our employees have increased. So we are suffering losses,” Mr Al-Molhem stated. He added that he believes the caps  played a key role in last year’s bankruptcy of LCC, Sama, adding that with the caps in place, it is hard for the carrier to face increased domestic competition. “We need more airlines to create competition and improve efficiency. Right now, people in the Kingdom are depending mainly on a single airline,” he said.