National Air Services CEO Suleiman Al Hamdan, upon the release of the NAS Air's 1Q2011 financial results, stated oil prices rose 25% year-on-year in the quarter, with the carrier also being impact by political unrest in the region (Bloomberg, 04-May-201). NAS Air’s accumulated losses may cause its closure, a halt to its operations, or as many as 1000 job reductions, which may exacerbate Saudi Arabia’s air transport difficulties, Mr Hamdan said.
NAS Air losses may cause its closure or scale back of operations
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Qatar Airways grows in Saudi Arabia as it catches up to flydubai and appears to end Al Maha ambition
Often overlooked in the story of Gulf aviation superconnectors is Saudi Arabia. A large and underserved domestic and international market in its own right, Saudi also possesses hub capability to challenge its better known rivals. 13 Saudi cities have international service but the flag carrier Saudia only serves five. Foreign airlines have moved in, taking advantage of Saudia's absence and the often favourable geography.
Qatar Airways intends to launch service to two new Saudi points in 2017, bringing its total number of services to 10 as it seeks to narrow the gap with the 13 destinations of the leader, flydubai.
In 2016 Qatar Airways overtook flydubai and Emirates in capacity size, making it the largest foreign airline in Saudi. Qatar's organic growth comes as it is increasingly likely that its proposed Saudi start-up, Al Maha Airways, will not launch. Saudia accounts for only 31% of Saudi's international market. This is likely to grow as Saudia continues its quiet revitalisation, aided by improved hubs at Jeddah and Riyadh. There is also a dual brand strategy with the LCC start-up flyadeal.
Ryanair's 117million pax in 2016 tops European airline groups. The first time an LCC topped rankings
For the first time ever in Europe, in 2016 a low cost airline carried more passengers than any other airline or airline group, as Ryanair's 117 million passengers pushed Lufthansa Group's 110 million into second place. Ryanair had beaten Lufthansa itself, but not the whole Lufthansa Group. IAG's first full year of including Aer Lingus helped it to take third place from Air France-KLM. Europe's number two LCC, easyJet, was ranked fifth.
The big five can be expanded into a big seven to include Turkish Airlines and the Aeroflot Group, although these two had contrasting growth rates in 2016. A chasing pack of middle sized airline groups includes three LCCs (Norwegian, Pegasus and Wizz Air) and three legacy airlines with varying challenges to establishing sustainable profitability (SAS, Air Berlin Group and Alitalia).
Most of the faster growing airline groups in the top 20 are LCCs and the main growth drivers for Europe's big three legacy groups are their LCC subsidiaries. Just outside the top 20 are some fast growing legacy airlines in Eastern Europe, demonstrating the potential there. Nevertheless, unless there is a big merger or acquisition, Ryanair looks set to remain at number one for some time.