An announcement on the proposedprivatisation of Saudi Arabian AirlinesCargo is imminent, according to vicepresident cargo sales and service, FahadHammad, with November being set asa deadline for this.

He insists separating from the parentairline will have a major positive impacton the cargo business, giving it greaterflexibility and control over its destiny."Cargo will be able to evolve its ownbusiness instead of being part of thelarger airline. We will be able to takequicker decisions," he says.

The carrier is hoping to attractactive investors to its cargo business,for example a logistics company orsome other partner, which can addvalue. Saudia Cargo made revenues of 1.5 billion riyals in 2006, a rise of 4.5percent. Cargo tonnage was static at310,000 tonnes.

¨C Peter Conway