JEDDAH, 24 May 2007 — Saudi Arabian Airlines will start issuing electronic boarding passes to passengers through the Internet by the middle of August, according to Khaled Al-Mulhim, the airline’s director general.

Speaking to Asharq Al-Awsat newspaper, Mulhim disclosed plans to link 25 travel agencies through a computer system, adding that they would be provided with devices to issue electronic boarding passes to passengers. Other travel agencies would be connected in the second phase of the project.

Referring to the Saudization plan, the Saudia chief said: “We have completed measures for the privatization of the catering sector and the strategic partner (in the new catering company) will be declared very soon.” Efforts are under way to privatize the air cargo sector, he added.

As part of the privatization drive, the airline would be transformed into a holding company with a number subsidiaries to run its catering and air cargo divisions, ground service, Prince Sultan Aviation Academy, technical and basic aviation services. “Part of the holding company will be floated for public subscription in the future,” Mulhim said.

The participation of specialized international companies as partners would strengthen the airline, he added.

Speaking about the competition posed by new private airlines, NAS and Sama, he said it would improve services and reduce Saudia’s burden. “Positive competition is something good as it eventually aims to improve the standard of services rendered to passengers,” he said.

Mulhim said the new developments would help Saudia focus on more profitable international routes. The arrival of new airlines would boost travel industry in terms of improving services and competitive prices. He emphasized the airline’s plan to expand its electronic trading services as a strategic option to win client satisfaction. “We also want to provide the best services to passengers on board our flights,” he said, adding that the electronic system would save a lot of time, money and effort.

Saudia has already introduced electronic ticketing services in some sectors. The International Air Transport Association (IATA) has asked all airlines to provide electronic ticketing services by the end of this year.