Saudia, Riyadh Air Sign Strategic Memorandum of Cooperation

Saudia and Riyadh Air announced the signing of a memorandum of understanding as part of a comprehensive agreement. (Asharq Al-Awsat)
Saudia and Riyadh Air announced the signing of a memorandum of understanding as part of a comprehensive agreement. (Asharq Al-Awsat)
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Saudia, Riyadh Air Sign Strategic Memorandum of Cooperation

Saudia and Riyadh Air announced the signing of a memorandum of understanding as part of a comprehensive agreement. (Asharq Al-Awsat)
Saudia and Riyadh Air announced the signing of a memorandum of understanding as part of a comprehensive agreement. (Asharq Al-Awsat)

Saudia and Riyadh Air announced the signing of a memorandum of understanding as part of a comprehensive agreement that includes operating flights using the shared code system, within joint efforts to better serve Saudi Arabia’s vision and ambitions in the aviation sector.

In a statement on Tuesday, the two companies said the MoU was the first major agreement between the carriers, and would lay solid foundations for a range of bilateral initiatives and agreements in the future.

In addition to enhancing the aviation sector in the Kingdom, this cooperation provides a comprehensive and diverse package of benefits for passengers travelling internationally and domestically within Saudi Arabia, including a broader range of destinations and services.

As part of the agreement, passengers on both carriers will be able to benefit from a wide range of advantages, explore code-share services and follow flights.

The deal will see the merging of the two carriers’ loyalty program so that travelers will be able to earn points or credits when traveling on code-share services operated by one of the two carriers.

Saudia CEO Capt. Ibrahim Koshy said: “We are very proud to form this strategic partnership with Riyadh Air, a cooperation that we consider to be an important turning point in the process of supporting the aviation sector. We are working to unify efforts to serve guests to and from the Kingdom, and we continue to move forward to achieve our ambitions to make a positive change in the aviation sector in general.”

Riyadh Air CEO Tony Douglas stated: “Riyadh Air and Saudia will play a significant part in the growth of travel tourism within the Kingdom and so having the national carriers working side-by-side is the best way to accelerate and manage this growth.”

He continued: “We are confident that Riyadh Air will raise the bar in air travel and working in cooperation with Saudia will help us achieve this as we prepare for take-off in 2025.”



Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
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Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo

Oil prices were up slightly on Friday on stronger-than-expected US economic data that raised investor expectations for increasing crude oil demand from the world's largest energy consumer.

But concerns about soft economic conditions in Asia's biggest economies, China and Japan, capped gains.

Brent crude futures for September rose 7 cents to $82.44 a barrel by 0014 GMT. US West Texas Intermediate crude for September increased 4 cents to $78.32 per barrel, Reuters reported.

In the second quarter, the US economy grew at a faster-than-expected annualised rate of 2.8% as consumers spent more and businesses increased investments, Commerce Department data showed. Economists polled by Reuters had predicted US gross domestic product would grow by 2.0% over the period.

At the same time, inflation pressures eased, which kept intact expectations that the Federal Reserve would move forward with a September interest rate cut. Lower interest rates tend to boost economic activity, which can spur oil demand.

Still, continued signs of trouble in parts of Asia limited oil price gains.

Core consumer prices in Japan's capital were up 2.2% in July from a year earlier, data showed on Friday, raising market expectations of an interest rate hike in the near term.

But an index that strips away energy costs, seen as a better gauge of underlying price trends, rose at the slowest annual pace in nearly two years, suggesting that price hikes are moderating due to soft consumption.

China, the world's biggest crude importer, surprised markets for a second time this week by conducting an unscheduled lending operation on Thursday at steeply lower rates, suggesting authorities are trying to provide heavier monetary stimulus to prop up the economy.