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.
Saudi Airlines criticises domestic price caps
You may also be interested in the following articles...
Global Airport Development Conference report: Trump, Brexit, pipelines and PPPs. Part 2
This report on the Global Airport Development Conference held in Lisbon on 29-Nov to 01-Dec-2016 covers the proceedings of Day 2 of the event.
Global Airport Development Conference 2016 report: Trump, Brexit, pipelines and PPPs. Part 1
The Global Airport Development (GAD World) conference was held in Lisbon, between 29-Nov and 01-Dec-2016. This CAPA report chronicles the presentations and debates that took place on the first two days, including selected ‘stream’ sessions on both days.
There was, inevitably, a political overlay to the event, with the (Jun-2016) UK referendum on continuing membership of the European Union (‘Brexit’), the (Nov-2016) election of President Trump in the US and associated ‘uncertainty’ dominating events.
Otherwise, the concern was, as always, the ‘pipeline’ of airport privatisation details, or rather the lack of them, while the hope was for the continuation of the trend towards PPP deals.