In an interview with Al-Eqtisadiah, Al-Molhem said the size of the fleet and the condition of facilities and installations, in addition to the scarcity of qualified staff, are some of the main challenges facing Saudia , adding that Jeddah and Riyadh airports are operating at more than 75 percent of their capacity.
Al-Molhem said that Saudia is one of the best airlines in the Gulf in that it keeps a tight and accurate schedule. In July, it achieved a 92-percent on-time arrival and departure rate, which is a tough percentage to achieve. He said that some mistakes might have occured during the modernization process in this vital sector.
Saudia achieved an advanced service but has always faced the problem of seat availability on its domestic flights even though more than 50 extra planes have been allocated to this sector.
The following is the full interview:
What is the approved criteria for the agreement signed last week to privatize the Saudi Aerospace Engineering Industry and what specifications did the company pass before purchasing 30 percent of the company?
We looked for those who wish to invest with us. Many investors had applied and their applications were evaluated. We chose a group who were provided with clarifications and information; they later presented their tender. Trabut had the best offer.
Saudia is criticized for its low seat capacity, especially in relation to domestic flights. When do you expect this problem to be solved and what are your future plans for this problem?
We have said before that the market depends on the volume of demand, but this volume and the economies of local carriers, coupled with stable prices, led to a lack of investment in this sector. We are working with relevant authorities to take in this growth. But we are worried for the future, because we expect demand to rise to more than 25 million passengers by 2020. We are working through the board of directors to find speedy short and long-term solutions to increased demand for domestic flights.
What are these speedy solutions?
We are working with our assets; the Civil Aviation Authority is looking into allowing other air carriers to enter this market, but at Saudia , we are trying to find ways to increase the number of available seats to meet the increasing demand.
What challenges is Saudi Arabian Airlines facing at the moment and is the size of the fleet one of these challenges?
Of course. The size of the fleet is one of these issues, and so are airports, because increasing demand is found at major airports like Riyadh and Jeddah, which are using more than 75 percent of their capacity. Even if we increase our fleet, the possibility of increasing the number of flights will be very unlikely. The fleet is one challenge, but there are other challenges like facilities and qualified staff.
You publish periodical figures about accurate flight schedules, which are very high, but clients often provide negative feedback. How do you explain that?
We publish our schedule every month through local press. If you have been following up the last figures, you would have noticed that we are the best Gulf carrier in relation to abiding by flight schedule. In July, for instance, 92 percent of our flights were on schedule, which is an unprecedented figure. We don't claim we are perfect, because correction and development is an ongoing process. Growth is not achieved by purchasing an extra plane or training employees. We always need extra planes; we always need to improve our services, which we do.
It always comes down to lack of seat availability. We provide 50 extra planes for domestic flights and we are trying to provide more planes within our potential. We find ourselves under pressure because of the scarcity of seats and the lack of competing air carriers. Nas entered the market lately, but demand still increased for Saudia nonetheless.
Do you have plans for international flights and what are your main new destinations?
We have new destinations like Toronto and Los Angeles and we will operate to Manchester in Britain next year.
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