Saudi Arabia's advisory Shoura Council recommended on Sunday an initial public offering for flag carrier Saudi Arabian Airlines instead of selling off its units piecemeal in a privatization effort. The council's transport and telecommunications committee made its recommendation in response to an annual report by the state-controlled firm, also known as Saudia, said Abdul-Aziz Al-Tuwaijri, a Shoura member who heads the committee. “The committee includes experts in the field ... It (committee) added a proposal by one Shoura member, Saud Al-Shammari, who advised that Saudia should remain under the state's control,” Tuwaijri told Reuters. “So the committee's recommendation was that the state owns the firm and a stake of its capital is sold to the public instead of selling its units to private firms,” he added. The committee's proposals were approved by the majority of the council's members, Tuwaijri said. In 2006, Saudia launched a gradual privatization of its catering, cargo, maintenance, ground services and aviation services units to pave the way for a flotation of a stake in its core transport unit. It has already sold to private investors a 49 percent stake in its catering unit and 30 percent of its cargo unit. The council also recommended that Saudia diversify its aircraft fleet.
