Struggling airline Saudia got $7b of state help in 2019-2020: documents

The government has provided state-owned Saudi Arabian Airlines with at least $7b in direct payments and other financial support in 2019 and 2020, company documents show, as the carrier struggles with losses and the coronavirus pandemic. The finance ministry approved a payment of 13.6b riyals ($3.6b) for Saudia in 2019, and a further 6.4b riyals in the first half of this year, according to the documents. Saudia has struggled for years and the pandemic, which has brought global aviation to its knees, has added more pressure on its finances. The amounts, labelled as “government compensation”, include government payments for services. The ministry has also taken charge of a 5.3b riyals loan provided by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), to the airline, and converted it to a “contribution in equity”, according to the documents. The airline and ministry declined to comment on the details of the documents, but said government compensation can cover a wide range of receivables, as well as any services provided by Saudia, including mandatory flight routes.<br/>