Saudi Arabian Airlines (Saudia) and its newly launched low-cost carrier division Flyadeal are to be privatised most likely through an initial public offering (IPO) by 2020.
Saudia and Flyadeal are planned to be privatised in a single transaction, according to a local media report
The rest of the Saudia business, which have not been privatised, are to be included in the 2020 plan. They include the cargo, maintenance, training, medical and real estate units of the state-backed carrier.
Shares of the carrier’s catering and ground handling services units were earlier listed on the Saudi Stock Exchange (Tadawul). In 2012, Saudia listed 30 per cent shares in its catering unit and raised $347m. The ground services unit offered 30 per cent of its shares in 2015 and raised an estimated $750m in capital.
MEED understands that a new limited liability holding company, Saudi Arabian Airlines Corporation (SAAC), is being formed as part of the privatisation programme. All the Saudia business units to be privatised will be organised under SAAC as the parent company.
There are no plans to privatise the Saudi Royal Fleet.
Saudia operates a fleet of 141 aircraft while Flyadeal began commercial operations only on 23 September.
Privatising the state-backed carriers, along with the airports, are part of the kingdom’s $200bn sell-off that come under its National Transformation Programme.
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