CARRIERS IN THE Middle East are looking for an upturn in 1995, improving on a patchy performance over the past year among the region's national carriers. Privatisation also remains on the agenda.
Saudi Arabian carrier Saudia could be back on course for break-even this year because of an increase in fare prices on domestic routes. The optimism emerged from an Arab bankers' meeting at an aviation seminar in Dubai on 17 January.
One banker estimates that the carrier could earn an extra $67 million from new domestic travel rates, which have risen by 10-20%. Latest official figures show Saudia's operations made a net loss of $115 million for 1993, with another loss expected for 1994.
Royal Jordanian also expects to post an improved performance in 1995, despite making "substantial losses" last year, says president Naher Dahabi.
The Jordanian national carrier had posted a profit of $2.3 million in 1993, it first for four years, but Dahabi warns that the carrier will be back in the red when 1994 results are revealed. Operating profits for 1994 were down by more than a one-third at $38 million and the final net result will be further dragged down by financing costs.
Dahabi expects benefits from the Arab-Israeli peace profits to begin to feed through into airline revenues during 1995, however. He adds that the Jordanian national carrier should also benefit from agreements with Israel's El Al to co-ordinate services and "...share new markets".
Royal Jordanian's privatisation will be achieved over a two-year period, beginning with the sale of airport and hotel operations.
Elsewhere in the region, Kuwait Airways (KAC) expects to announce lower profits of $10 million for the financial year to June 1994. Performance was affected by the outbreak of plague in India in September and the build-up of Iraqi troops along the Kuwait border in October.
Fast-growing Emirates, however, has revealed a record net profit of more than $24 million for the year to March 1994 and expects further improvement over the latest financial year. The UAE national carrier saw passenger numbers climb by 23% to two million over the year.
DNATA, the sister handling company at Dubai Airport, also turned in a 10% profit on sales of $76 million, bringing total group earnings to over $32 million.
Source: Flight International
