The airline industry is a temperamental one with the wrecks of companies that didn’t survive littered across the history books of aviation.
South Africa has seen a number of airlines come and go with it’s flagship SAA battling to turn a profit after years of government bailouts.
Saudi Arabia on the other hand has a different plan.
The Kingdom’s sovereign wealth fund is in talks to buy the national airline Saudia.
Bloomberg reports that the move by the Public Investment Fund (PIF), which oversees $925 billion in assets, is aimed at boosting tourism.
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Saudi Arabia’s Vision 2030 has seen a major emphasis on tourism and building the country to be the number one destination for a holiday or business travel.
The country is focusing on turning the local economy away from oil and towards alternative generators of income.
Bloomberg reports that the acquisition would see the PIF take over the airline’s ownership from the government to increase its efficiency and ability to make a profit.
There are also a few alternative ideas for business models.
The airline could be privatised or merged with Riyadh Air, a separate airline owned by the fund.
Founded in 1945, Saudia has a fleet of 144 aircraft.
This would be another major step in bolstering the Kingdom’s move to see many tourists visit the country as Saudi Arabia becomes the epicentre of many sporting events and entertainment activities.
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