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FINANCIAL NEWS
Saudi King orders an independent civil aviation authority
08 Nov 2011
(MENAFN) Saudi King Abdullah on Saturday ordered the establishment of an independent civil aviation authority and put its head in charge of the board of Saudi Arabian Airlines, Reuters reported.
The decision came as part of a series of royal decrees that separated civil aviation from the Ministry of Defence and Aviation following the death of Crown Prince Sultan, who was also in charge of the ministry.
The decree delegated all related duties and responsibilities of civil aviation to the General Authority for Civil Aviation, a move which could speed up the privatization process of the national carrier.
The Saudi government has been trying to privatize the airline, for many years. It launched the process in 2006 by dividing up the company into six units, including catering, cargo, maintenance, airlines, flight academy and ground handling, with a view to selling each separately.
The airline, one of the largest airlines in the Middle East, said earlier this year it seeks to launch the IPO of its catering unit estimated to be worth up to USD540 million.
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