Saudi Sama Airlines suspends operations

23 Aug 2010

(MENAFN) Sama Airlines, one of two low-cost carriers in Saudi Arabia, said that it will stop its services from Aug. 24 as the company failed to get government support and find investors after incurring losses, Reuters reported.

Government help in the form of fuel subsidies and the removal of price limits on domestic routes failed to materialize, the Dammam-based airline�s Chief Executive Officer Bruce Ashby said in a statement.

Sama, which started in 2007, operated six Boeing 737-300s and is chaired by Prince Bandar bin Khaled bin Faisal. The airline flew to 10 destinations within the kingdom and neighboring countries with 164 weekly flights, according to officials.

Riyadh-based National Air Services was the first Saudi low- cost carrier to get licensed. National Air and Sama competed with state-owned Saudi Arabian Airlines, which receives government support and subsidized fuel.

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