Sama airline blames losses on fuel prices

Sama, the Saudi low-cost airline, has said that it is losing millions of dollars because of unfair market practices.

The budget carrier has blamed losses at the company on distortions in the Saudi market which means the company pays almost five times more for its fuel than the national carrier, Saudi Arabian Airlines (Saudia).

Sama chairman Prince Bandar ibn Khaled Al-Faisal says his airline currently pays $2.30 a litre for its fuel, compared to 50 cents at Saudia.

Sama has been lobbying the government to grant the company the same fuel subsidy as the national airline, and to remove a fare cap on its economy class services (MEED 25:1:08).