The kingdom's national flag carrier has been encouraged by the strong passenger figures enjoyed by NAS and Sama Air since they launched, and is seeking an international partner for the project. It plans to launch international low-cost flights to cater for the huge market in expatriate workers. A Hajj and Umrah service is also planned.

'We have a potential partner for a joint venture and discussions are under way for leasing new planes suitable for a low-cost model,' says a Saudia official. 'We are aiming for a launch in October.'

Sama has also signed letters of intent on operating leases to expand its fleet, while NAS is expanding its route network.

The orders from Sama are the latest stage in an ambitious expansion plan. The deal will add two aircraft to its fleet, with agreement on another due soon and a further three in the summer. The airline, which launched its maiden flight in March, aims to expand its fleet to 35 aircraft by 2010.

'Further negotiations are under way for another batch of planes to be delivered early next year,' says Andrew Cowen, Sama's chief executive office. Sama will not name the leasing companies with which it is in talks until contracts have been signed. It is known to have been in negotiations with a number of high-profile firms, including GE Commercial Aviation Services and Abu Dhabi's Oasis International Leasing.

The airline is also planning to open new routes in Saudi Arabia as its fleet expands. 'We will be announcing new destinations within the month, aligned with the additional aircraft,' says Cowen.

Meanwhile, NAS began flying between Jizan and Riyadh in April.

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