Saudia Goes Global
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Saudi Arabian Airlines celebrated on January 10, 2011 its joining of the global SkyTeam alliance, which currently groups 13 airline companies. During the ceremony, Eng. Khaled Al-Molhem, Director General of Saudi Arabian Airlines, signed the agreement with SkyTeam Chairman Leo van Wijk in the presence of top executives and representatives of the alliance's members.
The ceremony began with a welcome speech by Deputy Director General Mr. Abdul Aziz Al-Hazmi who said the agreement with SkyTeam would be considered "one of the main landmarks" in the history of the national flag carrier. He praised the tremendous efforts exerted by the working team to achieve this strategic objective, adding that the accord would strengthen cooperation with member airlines and improve services being rendered to passengers around the globe.
A Milestone
In his keynote speech, Eng. Al-Molhem said the historic agreement would strengthen Saudia's position among international airlines, enabling the national flag carrier to extend new services to its customers and provide them with convenient connection flights to destinations across the world. He said Saudi Arabian Airlines was able to reach this agreement after fulfilling the alliance's seamless conditions. "The developmental measures taken by Saudia in various areas have enhanced Saudia's competitive position and made it the largest airline in the Middle East," the director general said.
Eng. Al-Molhem also spoke about the strategic position of Saudi Arabia being Middle East's largest economy and a member of G-20. The Kingdom receives millions of pilgrims from around the world who come for performing Haj and Umrah every year, the Saudia chief said. There are nearly 1.5 billion Muslims in the world. He referred to a project to expand King Abdulaziz International Airport in Jeddah with state-of-the-art facilities and increase its annual capacity from 17 to 30 million passengers. He predicted substantial increase in air traffic to Saudi Arabia, being a strong economy and a major destination for religious and cultural tourism.
Alliance Expansion
In his speech, SkyTeam Chairman Mr. Van Wijk welcomed Saudi Arabian Airlines to the alliance and said its membership would add 35 new destinations to SkyTeam's global network. "Saudi Arabian covers a considerable part of the Arabian Peninsula and the Indian subcontinent. Its membership in SkyTeam will enable us to compete more efficiently within the region." He disclosed plans to expand the alliance by including a number of new airlines. He said as a result of agreement with Saudi Arabian Airlines, SkyTeam passengers would be able to get connection flights to the Gulf, the Indian subcontinent and North Africa from its main hubs in Riyadh, Jeddah and Dammam.
The ceremony featured the screening of two documentaries on Saudi Arabian Airlines and SkyTeam as well as a variety of cultural programs presented by a Saudi folklore troupe, which won the appreciation of participants, especially foreign guests.
35 New Destinations
Later addressing a press conference, Eng. Al-Molhem said by signing the agreement, Saudia would be the first airline in the Middle East to join SkyTeam. Saudi Arabian Airlines complements the SkyTeam network by offering customers access to destinations across the Middle East not currently served by SkyTeam members. Through Saudi Arabia's major hub's of Riyadh, Jeddah and Dammam, travelers can connect to new destinations in the Arabian Peninsula, the Indian subcontinent and Northern Africa, including 35 domestic and international routes such as Alexandria, Casablanca and Beirut. SkyTeam members on the other hand will have access to new potential customers from the region as Saudi Arabian Airlines offers direct flights to Europe, Asia, Africa and the USA.
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The Director General said Saudia would not have reached this agreement if it had not carried out its fleet modernization and operation restructuring programs. "We'll continue our development programs to improve services. We are now in day one. It will be followed by day two, day three and so on," he said. He said one of the major requirements to join SkyTeam was changing the systems to match with those of the alliance in order to achieve total integration with other member airlines. "Our ability to change the system in 2010 enabled us to join the alliance," he added.
40 Co-Locations
Once a carrier joins the alliance, it can increase its network offerings through alliance partnerships, such as code-share agreements and the ability to offer additional destinations service by other SkyTeam members. In turn, as a result of new destinations served and new routes offered, the market position of the individual carrier increases. A key element of the SkyTeam global network is the hub-and-spoke system, which provides unparalleled connectivity and an easy way for customers to travel using members of the same alliance from their departure city to any location in the world.
Members also enjoy cost-savings from joint synergies through co-locations. Since 2000, SkyTeam has opened more than 40 co-locations in major destinations and hubs around the world, including Amsterdam, Athens, Barcelona, Beijing, Brussels, Buenos Aires, Caracas, Geneva, Istanbul, Lagos, Manchester, Mexico City, Munich, Milan-Malpensa, Moscow-Sheremetyevo, Paris-Charles De Gaulle, Prague, Rome, Stuttgart, Tunis, Venice and Vienna.
SkyTeam developed a new level of co-location at London Heathrow's Terminal 4, the first airport in which all co-located SkyTeam members share kiosks, allowing alliance passengers to access travel reservations with any of the SkyTeam carriers.
