24-Mar-2011 12:51 PM

Saudi Airlines criticises domestic price caps

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.

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More