Wednesday, Aug 16, 2006
RIYADH (Zawya Dow Jones)--Khalid Abdullah Almolhem, director general of Saudi Arabian Airlines told Zawya Dow Jones Wednesday that the next division to be privatized will be ground handling.
"We are going to invite Saudi and International private investors to bid for our five divisions, one by one, in the coming 46 weeks, we will make monthly announcement, we are going to approach the end of this process no later than 24 months," he said.
The state-owned airline, one of the three largest in the Middle East, officially invited investors to start the bidding for its catering division Saturday.
"We start hearing from local and international investors, expressing their interest to buy 30%-49% stake in the company's catering division," Almolhem said.
The company has a Sept. 27 deadline for bids. Earlier this week, a Saudi Arabian Airlines statement said bidders will play a role in the new catering company's management and should bring some catering expertise to the business.
"We will respond to the investors who can add value to the company, and who are capable of meeting the international standards. After that we will make technical qualification for the bidders, before we evaluate the financial offers," Almolhem has said.
However, Almolhem said it's too early to talk about the privatization of the holding company.
-By Anees Alqudaihi, Zawya Dow Jones; +966 1 291 4872
(END) Dow Jones Newswires
08-16-06 1329ET
Copyright Zawya Dow Jones Newswires 2006
