While the US seems to take a turn toward nationalized medicine, Saudi Arabia is moving to privatize its national airline, Saudia (formally, Saudi Arabian Airlines). Saudi Gazette reports that agreement was reached on a number of facets to move control of the airline out of government hands and into the private sector. The intent is to improve performance, including profitability. An example of the waste that might be avoided through privatization is the ‘video show on the corporation’s achievements’ that was presented to the Crown Prince. Might not a simple printed statement have sufficed?
Crown Prince oversees Saudia’s privatization agreements
RIYADH – A number of agreements were signed Sunday to assist in the privatization of Saudi Airlines.
The ceremony was attended by Crown Prince Sultan, Deputy Premier, Minister of Defense and Aviation, Inspector-General and the Chairman of Saudi Arabian Airlines.
The agreements were signed with a number of national companies and banks. The privatization program was recently approved by the Supreme Economic Council.
Director General of Saudi Airlines, Eng. Khaled Al-Mulhim, said that the agreements were the result of feasibility studies.
The plan is to ensure that Saudi Airlines improve its operational performance, enhance its services, and work towards a comprehensive restructuring of its strategic units.
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Arab News‘s coverage is here:
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March:23:2010 - 02:37
I believe they dropped the “Saudia” tag and reverted back to “Saudi Arabian Airlines” when they changed their livery back in 1996.
Anyway, this has been a long time coming indeed. The amount of waste and corruption there is legendary.