Saudis bankroll new airline company in Yemen

Yemenia Airways is preparing to launch the first domestic flight through the new Internal Air Transport Company in 2008. 

According to Abdullah al-Mutareb, executive director of Yemenia, three Saudi commercial investment companies have split the capital of the new company as partners and primary contributors, which amounts to a total of $100 million.     

Yemenia recently signed partnership contracts with the three Saudi investment companies. According to al-Mutareb, the Saudi investors bought 75 percent of the shares in the company, while Yemenia owns the remaining 25 percent.  

Al- Mutareb indicated that the capital structure of the Internal Air Transport Company will be the biggest of its kind in Yemen. It will increase from $45 million to $100 million as a result of the Saudi investors’ involvement as majority shareholders. 

Initially, the new company will have a fleet of four jets comprising of the Q400, with a capacity of 67 passengers. The contracts for these jets, officially signed with a Canadian company, cost $92 million. The new jets are scheduled to arrive at the end of 2007.     

Al-Mutareb said that the new company will launch three direct daily flights between Sana’a and Aden, Sana’a and Mukalla, and four other direct daily flights between Sana’a and Taiz, and Sana’a and al-Hodeidah,.

“The company will concentrate on the needs of both Yemeni citizens and foreigners living in Yemen. The company aims to transport the maximum number of passengers at the lowest charge.”    

“Prices will start at YR5,000—$25, per ticket,” al-Mutareb said.  “Regarding distribution and sales, the company will adopt new payment methods through banks, post offices, and via mobile phones and the internet. Passengers will be issued with electronic tickets. We hope to transport one million passengers in 2012.” 

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