AVIATION SERVICES
From new airports to new target markets, the Kingdom's growing aviation industry means more opportunities for aviation service providers.
Our company was the first airline caterer in Saudi Arabia and we catered for all the airlines in the country. Then in 1980 Saudi Arabian Airlines (Saudia) set up its own catering company and monopolized the business. In 1985, I came in and saw a gap in the market, and started catering to private jets. Then little by little, we extended our business to the Hajj and Umrah, then foreign airlines, and now we are back full circle to local carriers, again with Flynas. We currently have facilities in Riyadh, Jeddah, and Abha and have plans for further facilities in Dammam and Medina. The number of passengers will keep growing, provided we continue to expand our airports. Jeddah has a new airport, and Riyadh has just opened a fifth airport terminal. This will allow us to double our capacity to 10 million meals a year in 2017. First, we have to build the base, then from 2017-2020 we will concentrate on growing the business in preparation for our IPO in 2020.
The world is facing big changes, politically and economically. It is affecting the vision and implementation of our project because the political instability in a number of Muslim countries is not helping us to reach the targets we have set. We have started our Umrah season, and there is a great opportunity to cater to passengers who come and perform the Umrah. But, unfortunately, there have been a lot of cancellations from several countries, especially Turkey and Egypt. It is very costly for the people to come for Umrah because of the currency exchange rate. There has been greater courting of the Far East with travel packages, as well as some companies targeting the South American markets. Even though these regions are not home to many Muslims there are a number of low-cost carriers that make the flight inexpensive if they connect from Europe and Istanbul and other countries in the region.
Our success amongst the Gulf carriers and carriers from the region has been a positive surprise for Swissport. Competition is not totally new to Saudi Arabia, but it has been a while since there has been such a competitive environment in the Kingdom. Overall everyone benefits from this competition: passengers, airlines, and handlers. Assuming that we will be successful and meet our business goals, I expect our competition to continue growing because of the rapidly growing demand. There are large ongoing investments from new airlines and the national carrier. There is sufficient room for two strong players in the market. Our largest customers at the moment are Gulf Air, Jazeera Airways, DHL aviation, and Scoot, which is from Singapore. We recently signed two prominent carriers, Royal Jordanian and Air Arabia, and are expanding with several others. We expect our current customers to be able to grow with the new Jeddah Airport, and this will also attract new airlines.
AVIATION SERVICES
TABLE OF CONTENTS
Column
YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister’s Office & Second Minister of Foreign Affairs and Trade, Brunei
TBY talks to YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister's Office & Second Minister of Foreign Affairs and Trade, Brunei, on the sector.
read articleReview
A Crude Awakening
The Kingdom has made renewables a critical aspect of its ambitious Vision 2030 effort to diversify its economy and wean itself from a strictly carbon-based diet, not to mention empower local businesses and individuals to take up the mantle and lead the energy sector into the next generation.
read articleInterview
Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) , Saudi Aramco,
TBY talks to Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) at Saudi Aramco, on the IKTVA program, supporting local content, and looking back over a successful year.
read articleInterview
Ayman Abdullah Alfallaj, CEO, Thiqah
TBY talks to Ayman Abdullah Alfallaj, CEO of Thiqah, on how the private sector can keep pace with the speed of public reforms, delivering a strong and lasting value proposition, and integrating the fruits of privatization into the public sector.
read articleFocus: Technology Investments
Investment Calling
A technological revolution is underway in the Kingdom. Already one of the most tech-savvy nations in the Middle East, the Saudi market has long sought a thriving domestic technology and innovation scene. And with Vision 2030, it is on course to deliver just that.
read articleReview
A Hejaz Unhindered
An ambitious series of road and rail projects from the Jordanian border down to the Indian Ocean are slated to open in part before the end of 2017. They bring the Kingdom that much nearer to its goal of greater non-carbon-based economic integration with the world.
read articleInterview
Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and Minister, Civil Service
TBY talks to Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and current Minister of Civil Service, on an attractive legislative framework for investment, railway linkages, and port developments.
read articleInterview
Rumaih M. Al-Rumaih, President, Public Transport Authority (PTA
TBY talks to Rumaih M. Al-Rumaih, President of Public Transport Authority (PTA) & Acting President of Saudi Railway Organization, on teaming up with commercially committed partners, making sure the Kingdom's land and sea bridges are of the first order, and providing employment for all the Kingdom's inhabitants.
read articleInterview
Nabeel M. Al-Amudi, President, Saudi Ports Authority, and Minister of Transport
TBY talks to Nabeel M. Al-Amudi, Minister of Transport, and President of Saudi Ports Authority, on optimally restricting concession agreements, resolving bottlenecks in the logistics chain, and privatizing as rapidly as possible.
read articleInterview
Khaled Bin Abdullah Al Hogail, CEO & Managing Director , Saudi Public Transport Company (SAPTCO)
TBY talks to Khaled Bin Abdullah Al Hogail, CEO & Managing Director of the Saudi Public Transport Company (SAPTCO), on the importance of strong and rational regulations, knowledge transfers, and unifying public and private transportation networks.
read articleInterview
Imad El-Zein, CEO, Auto World-Sixt Saudi Arabia
TBY talks to Imad El-Zein, CEO of Auto World-Sixt Saudi Arabia, on growing market share in challenging circumstances, partnering with world-class players to boost its local presence, and combining better services with lower costs.
read articleInterview
Saleh H. Al-Ghamdi, Acting CEO, Saudi Air Navigation Services Company (SANS)
TBY talks to Saleh H. Al-Ghamdi, Acting CEO of Saudi Air Navigation Services Company (SANS), on maximizing safe and effective services, effectively increasing the rate of Saudization, and easing the pathway of women into the workforce.
read articleInterview
Khalil Kutubkhanah, CEO, Jeddah Development and Urban Regeneration Company (JDURC)
TBY talks to Ibrahim Khalil Kutubkhanah, CEO of Jeddah Development and Urban Regeneration Company (JDURC), on Jeddah's unplanned settlements, the company's redevelopment projects, and its partnership model with the private sector.
read articleInterview
Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister, Planning and Health & Director of the Vision Realization Office
TBY talks to Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister for Planning and Health & Director of the Vision Realization Office, on reforms within the Ministry of Health, the corporatization of healthcare provision, and transformations in care delivery.
read articleInterview
Mohanad A. Dahlan, CEO, University of Business and Technology (UBT) Company
TBY talks to Mohanad A. Dahlan, CEO of University of Business and Technology (UBT) Company, on the evolution of the company, education investments, and upcoming sectors that will need support from the sector.
read articleFocus: Universities
Broad and Deep
As part of the continuing decentralization of higher education in Saudi Arabia, individual universities are pursuing their own paths to grow their faculties, engage with various international stakeholders, and ultimately move toward a more privatized future.
read articleInterview
Rafique Izhiman, Area General Manager KSA Jeddah, Yanbu Hotels
TBY talks to Rafique Izhiman, Area General Manager KSA Jeddah/Yanbu Hotels & General Manager, Intercontinental Hotel Group (IHG), Jeddah, on the role the firm plays in the market, expanding its footprint in the country, and expectations for 2017.
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