Kayala Airline feels strain of financial crisis and halts operations

Kayala Airline the luxury carrier from Saudi Arabia's National Air services will suspend operations next month because of increasing costs and reduced demand.
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“We expect our Kayala customers to understand the management decision and the rationale behind it,” said chief executive Sulaiman Abdullah Al Hamdan in the Khaleej Times.

Al Hamdan added that after carrying out a study on Kayala’s financial return the company has decided the carrier is “no longer feasible”.  And that the parent company is having to incur an “unbearable cost” to support the carrier, especially at a time when demand is falling and the economic outlook is poor.

The airline operates a fleet of 44-seat Airbus A319s and offers services between Riyadh, Jeddah and Dubai.

Al Hamdan added that National Air Services is not giving up on the business model and is studying options for a possible future project.
 

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