Tuesday, Jan 11, 2011
(This item was originally published Monday.)
DOW JONES NEWSWIRES
Saudi Arabian Airlines announced plans Monday to join the SkyTeam airline alliance in 2012, only the third carrier from the fast-growing Middle East region to sign up with the global groupings that dominate the industry.
The state-owned flag carrier has long been viewed as a candidate for privatization, and said its plans to complete a four-year restructuring initiative by 2013 that includes the flotation of some business units.
SkyTeam, led by Air France-KLM (AF.FR) and Delta Air Lines Inc. (DAL), added five prospective members to its existing 13-strong line-up last year from the shrinking band of carriers not allied to the three main groupings. SkyTeam Lebanese flag-carrier Middle East Airlines has also been seen as a potential SkyTeam member.
Saudi Arabian would be the first airline from a member of the Gulf Cooperation Council state to join an alliance. Egyptair is a member of the rival Star grouping, while Royal Jordanian Airlines is in Oneworld.
Jeddah-based Saudi Arabian operates a fleet of more than 120 aircraft and last year ordered 12 Boeing 777-300 Extended Range aircraft and firmed up a commitment to buy eight 787 Dreamliners as part of efforts to expand its regional and longhaul network.
"Saudi Arabian Airlines is a significant player in the Middle East and covers a considerable part of the Arabian Peninsula and the Indian subcontinent," said SkyTeam Chairman Leo van Wijk in a statement. "Its membership in SkyTeam will enable us to compete more efficiently within the region."
The Middle East has been one of the fastest-growing airline markets, driven by the growth of Emirates Airline, Etihad Airways and Qatar Airways through the last recession
-By Jonathan Buck, Dow Jones Newswires; +44 (0)207 842 9237; jonathan.buck@dowjones.com
(Doug Cameron contributed to this article.)
(END) Dow Jones Newswires
11-01-11 0402GMT
