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PIF eyes Saudia acquisition: Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) is reportedly in early talks to acquire the kingdom’s national carrier Saudia as soon as next year to add it to its aviation assets portfolio, Bloomberg reports, citing sources with knowledge of the matter.
What we know: The ownership of the flagship airliner would be taken over by PIF from the government with the intention of improving its efficiency and net income, the sources said. The flagship carrier could be either privatized or merged with Riyadh Air — a second flagship carrier being set up by PIF, they added.
Details are scant: There is no clarity as to how Saudia would be valued by PIF, which has received government-owned assets at no payment in the past as an intermediary step towards their privatization, Bloomberg said. There are also no firm decisions as of yet, with talks still at an early stage, and it is possible that the initiative may be put off or canceled altogether, sources told the outlet.
The PIF wants Riyadh Air to be the Gulf airlines boss: The sovereign wealth fund launched Riyadh Air in March last year as it looks to challenge its regional rivals Emirates and Qatar Airways. It is set to kick off its operations next year and has a target of operating flights between 100 destinations by 2030. Saudia will also bid adieu to capital Riyadh by 2030 to make way for Riyadh Air and will instead shift its focus towards operations in Jeddah’s King Abdulaziz International Airport.
