in Air Transport / Business & Finance / Maintenance
SAEI deal as Saudia presses on with privatisation
Prince Fahd bin Abdullah, president of Saudi Arabia's General Authority of Civil Aviation (GACA), and chairman of Saudia's board of directors said yesterday that the privatiation of Saudia is in the final stages.
Speaking at an official signing ceremony for the sale of 30% of the airline’s engineering arm, SAEI, Prince Fahd said: “We hope Saudia’s privatization process will be completed shortly,”
Saudia has sold 30 percent of its stake in SAEI to Tarabut Aircraft Maintenance Company, an affiliate of Integrated Transport Company (ITC). The agreement between the two organizations was signed by Prince Sultan bin Muhammad bin Saud Al-Kabir, chairman of ITC, and Khaled Al-Molhem, director general of Saudia.
The catering division of the airline has already been fully privatised and has proved very successful. Now the Saudia board believes that the same could happen to the engineering business.
Prince Fahd emphasized the important role of SAEI, which provides aircraft maintenance services not only for the national carrier but also for foreign airlines.
“We hope it will become the major aircraft maintenance centre in the Middle East,” he said.
Saudia director general, Al-Molhem said: “This is another important step toward privatization of the airline’s strategic units. “This strategic partnership will have great benefits for the Kingdom as well as investors. This is a model of successful partnership between the public and private sectors.”