Sama, one of two low-cost airlines in Saudi Arabia, will stop its services from Aug. 24 as the company failed to get government support and find investors after incurring losses.
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 today in e-mailed statement. “We also tried to find strategic investors who are ready to invest in the company and pump the necessary liquidity to enable Sama to operate.”
The decision was taken after the airline recorded a loss of 1 billion riyals ($266 million), said a board member before the announcement. Sama, which received 200 million riyals as a loan from the government to cover fuel costs and 500 million riyals from shareholders, fell short of 300 million riyals to keep the operations on track, he said, declining to be identified.
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