Sama under pressure at home

More signs are emerging that Sama is under pressure in the Saudi domestic market, given the current operating climate. Middle East traffic is now in decline, for the first time in several years, and the fuel spike in the first half of 2008 has caused considerable discomfort to even the most established and profitable carriers, let alone start-ups. [978 words]

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This report contains the following subheadings:

• Fare caps and fuel still dominate conditions in the Saudi domestic market
• Going forward: GACA liberalising at its own pace
• The future: more demand but higher fares necessary

This report contains the following charts and tables:

• Saudi Arabia passenger traffic (domestic & international): 1997 to 2007
• Saudi Arabia passenger traffic (domestic & international): 1997 to 2007