Saudi Arabian Airlines has said it will establish a private company within six months to provide ground and passenger services at the Kingdom’s airports. The airline’s director general, Khaled Al- Molhem said the new company would be established with the support of National Handling Services and Attar Travel Company, adding that it would serve not only the national carrier but also other airlines operating in the Kingdom.

The establishment of the new ground service company comes as part of the airline’s ambitious privatisation programme. The carrier intends to offer 30 per cent of its catering unit through an initial public offering in nine months. The airline’s catering unit was the first to go as Saudi sold 49 per cent of it in January 2008, followed by the cargo unit which is now 30 per cent owned by Tarabut Air Freight Service.

The airline has orders for 70 Airbus and Boeing aircraft worth SR20 billion (US$5.3 billion) to modernise its fleet.