Bidders will submit an offer for up to 49 per cent of the catering division. The airline official says that 13 companies have prequalified, although one of the international businesses known to be bidding told MEED that it believed up to 17 groups were involved.

The final shortlist is believed to include Singapore Airport Terminal Services, the in-flight catering group of Germany's Lufthansa and Alpha Airports of the UK. Most international groups have brought in a Middle East partner for their bids.

'It is a long, technical process and getting things running has taken longer than expected,' says an official for one of the bidders.

The catering division is the first element of a wide-ranging programme of privitisation for the Saudia group. In the coming months, the cargo, ground handling, technical services and pilot training academy will also be part-privitised.

www.meed.com/transport