Struggling airline Saudia got $7 billion of state help in 2019-2020: documents | Reuters
The government has provided state-owned Saudi Arabian Airlines (Saudia) with at least $7 billion in direct payments and other financial support in 2019 and 2020, company documents show, as the carrier struggles with losses and the coronavirus pandemic.
The finance ministry approved a payment of 13.6 billion riyals ($3.6 billion) for Saudia in 2019, and a further 6.4 billion riyals in the first half of this year, according to the documents reviewed by Reuters.
Saudia has struggled for years and the pandemic, which has brought global aviation to its knees, has added more pressure on its finances.
The amounts, labelled as “government compensation”, include government payments for services.
The ministry has also taken charge of a 5.3 billion riyals loan provided by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), to the airline, and converted it to a “contribution in equity”, according to the documents.
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