National Air Services announces USD2 billion fleet expansion

These aircraft will form the core of NAS's newly licensed low-cost carrier (LCC) to be launched in early 2007. In addition, the fleet will serve to expand the company's highly successful Aircraft Fractional Ownership and Leasing program (NetJets) and Al Khayala Airlines. Following these acquisitions, NAS's total fleet will include more than 100 aircraft.

With investments of over US$2 billion, the company's initial acquisition will include Airbus, Gulfstream and Raytheon aircraft. The selection of aircraft, in terms of seating capacity and haul range, will be determined by the specific needs of each business unit. According to senior company officials, the acquisition will be financed by leading Saudi, regional, and international financial and leasing institutions.

Ayed Al Jeaid, NAS Chairman, said that the company's acquisiton plans are reflective of the growing demand at the company's different aviation units. "This is also in line with NAS's ambitious strategy to diversify its business portfolio and tap new markets," said Al Jeaid.

Known across the Middle East as a leading provider of private aviation services, NAS recently expanded its business lines to include commercial aviation services. In 1994, the company launched Al Khayala Airlines, a business travel category that is new to the region. Earlier this month, NAS became the kingdom's first private-sector company to be awarded government air transport license to operate flights from the Saudi capital, Riyadh.

The NAS Chairman said:

"The company is expanding its target base to include a wide range of customers with varying needs, and is focused on providing them with innovative services and tailor-made solutions - all delivered at the highest service levels by committed employees. In the process, NAS is also delivering increased value to its stakeholders."

According to recent market research, the growth in the aviation industry in the region stems from booming regional economies, increasing wealth and ongoing deregulation of the sector. "This creates attractive opportunities for NAS," said Al Jeaid. "The overall growth of Middle East aviation and travel market has served as the catalyst for our significant expansion plans."

NAS has recently completed an internal re-engineering process marked by the appointment of Taher Agueel as Chief Executive Officer as well as a team of world-class aviation experts to occupy senior management positions.