New initiatives at Saudi Airlines Catering Division

The newly privatized Saudi Arabian Airlines Catering Division is optimistic about new initiatives coming up.

The emergence of new low-cost/chartered airlines in Saudi Arabia will create new business opportunities. Negotiations are ongoing with the concerned airlines and a deal will be worked out in early 2008.

The company is also implementing “aggressive marketing” to enhance sales through mail order, says Talal Banoun, manager development – SKYSALES, Saudi Arabian Airlines Catering. "Effective the March 2008 issue of the in-flight brochure, products selected exclusively for mail order sales will be advertised along with the products listed for onboard sales,” he said.

The company continues to encourage its cabin crew to bring healthy sales. Besides the 10 percent commission on gross sales and regular monthly incentive programs, the company organizes special crew competitions. This time the special crew competition was organized for the period July to December 2007 with the first five prizes ranging from Audi A4 automobile worth US$47,000, a diamond set worth US$20,000, Oriental Fragrances Set worth US$12,000, cash rewards worth US$6,700 and US$3,200 and five consolation prizes of gift vouchers worth US$1,350.

Saudi Arabian Airlines Catering Division’s surveys have highlighted that its major customers are Saudis and other Arab nationals; the high yield sectors for on board sales are the domestic routes (within the Kingdom), Cairo, Dubai, Beirut, Casablanca and Damascus routes in the International network.

“We do not foresee any major challenges that will be a hurdle to our growth in sales for 2008,” said Banoun. The approval to set up duty free shops in the Kingdom is in place but the duty free shops have not yet opened and as per the latest information available it might take another four to eight months before the first of the duty free shops are opened. To date there has been no direct effect on the onboard sales, reports Banoun. “However, our prices are in line with the travel retail business and the competition with duty free shops in the out of Kingdom stations always existed and hence the competition with the local duty free shops will not be a new challenge as such,” he said.

—Hibah Noor