Sama Airlines suspended its operations

[Adnan Usman Khan]

Very sad news......On 24th stopped its all flights....


Saudi's Sama Airlines Says Temporarily Suspending Operations

Sunday, Aug 22, 2010

ZAWYA DOW JONES

Saudi Arabia-based low-cost carrier Sama AirlinesSama AirlinesLoading... said in a statement Sunday that it is temporarily suspending operations after it failed to obtain financing from investors or government support.

The company didn't, however, say when it would resume operations.

Earlier Sunday, a spokesman for the kingdom's civil aviation regulator had said the airline plans to stop its services this week after facing losses.

"We were expecting an aid package from the government in the form of subsidies for fuel ... necessary support to serve (Saudi) cities covered by the compulsory service," Sama said in the statement.

"We also sought to find strategic investors willing to invest in the company and inject the needed liquidity that would allow Sama to continue operations ... none of these solutions proved conclusive," it added.

Last year, Sama, which launched operations in 2007, said it signed agreements to buy 58 Airbus A320s and 12 787s in the next three years.

Prince Bandar Bin Khaled Bin Faisal is chairman of Sama, which competes with state-owned Saudi Arabian Airlines and low-cost carrier National Air Services.