The kingdom's flag carrier is also awaiting final board approval for the consortium to run part of the airline's privatised catering business.

Saudia is repositioning itself domestically in the light of competition from new low-cost airlines NAS Air and Sama. The Saudi market makes up more than 65 per cent of the national carrier's revenue, but remains a loss-making business.

Discounted seasonal offers will place greater emphasis on the company's international services within the region. This will be complemented this with a more competitive price structure at home.

'For years we have not been allowed to raise prices when we needed to because the government would not allow us,' says a Saudia official. 'Now there are new low-cost airlines in the kingdom, which eases the pressure on our capacity but means we must look at more flexible pricing, such as cheap flights for pilgrims during the Hajj season, to be more competitive. We also want to put the airline back where it used to be as a major airline within the region.'

On 28 February, the company selected an unnamed consortium to run the part-privatised catering business. An official announcement is expected within days.