National Air Services (NAS) plans to launch the first no-frills airline service in Saudi Arabia in early summer 2006, says Mohammed Al Zeer, president and chief executive.
In the first year of operations, NAS hopes to open service to three cities – Jeddah, Riyadh and Damman – using as many as four aircraft in the Airbus A320 family, says Al Zeer, adding that he is “hopeful to catch the summer travel season”.
NAS also has a five-year growth plan that would see the as-yet unmanned low-cost service to serve nearly all of Saudi Arabia’s 26 airports and acquire a total of 16 aircraft in the A320 family.
Airbus and NAS are still in negotiations about the initial aircraft order. NAS also is seeking backing from European export credit agencies to help secure an aircraft financing deal with an “international lending institution”.
The plan marks a dramatic strategic expansion for the six-year-old, Jeddah-based company. NAS launched in 1999 as a regional subsidiary for the NetJets fractional business jet service, but has expanded to offer chartered VIP and medevac services.
On 19 November NAS announced plans to acquire at least five A318 Elites to launch a VIP shuttle service in Saudi Arabia called Al Khayala, focusing on the business shuttle market between Riyadh and Jeddah.
In breaking into the no-frills airline market, Al Zeer acknowledges the challenge of competing in a country that already offers one of the world’s lowest-cost, scheduled airline services. But he says his business model can overcome this challenge by offering flexible pricing and discounts for early bookings.
Last year, the Saudi government granted NAS Part 121 certification, which allows the company to operate as a scheduled passenger airline.
STEPHEN TRIMBLE
Source: Flight Daily News
