Saudi Arabian Airlines Signs Join Cooperation MOU With Air France Industries KLM E&M

Paris, Amstelveen, November 13th, 2007 – Saudi Arabian Airlines’ Technical Services Division has signed a Memorandum of Understanding (MOU) with Air France Industries KLM Engineering & Maintenance to jointly survey potential opportunities and partnership agreement. The signing of the MOU is in line with Saudi Arabian Airlines' strategic plan to privatize its Technical Services Division, and allow the existing Technical Services Division to transform into the largest Maintenance Repair & Overhaul (MRO) center in the Middle East equipped with high caliber of extremely experienced, trained and professional Saudi workforce.

"The investment prospects in the Kingdom of Saudi Arabia and the region provide suitable grounds for different companies and businessmen to explore these opportunities especially those of the aviation industry which is witnessing enormous growth in aircraft and passengers traffic volume. Saudi Arabian Airlines, Technical Services capability along with the expertise of the dedicated, highly trained and qualified staff, and their professionalism in demonstrating the ability to perform various complicated aircraft and aircraft equipment maintenance , overhaul, repair and testing as evident by the various repair stations approvals such as FAA and EASA proved attractive and an excellent business opportunity that should not pass by un-noticed. Indeed the approach of major investment interested organizations expressing their desire in becoming our major supporters and strategic partners during a well prepared for and evaluated business plan of becoming a Maintenance Repair and Overhaul Organization with separate entity from the airline is proof enough of the high standard we have reached and maintained over the years. An achievement of which we stand very proud", said Engineer Ali Milaat Vice President of Saudi Arabian Airlines' Technical Services on the occasion of signing the memorandum of understanding with Air France Industries KLM E&M.

Alain Bassil, Executive Vice President Air France Industries, stated: "Saudi Arabian Airlines' Technical Services Division and Air France Industries KLM Engineering & Maintenance have enjoyed a closed working relationship over the past years in various MRO fields such as airframe, engines and component support. Based on this long term partnership spirit, it is natural for the AF KLM group to support Saudi Arabian Airlines in such a strategic move of setting up an independent MRO entity. We are pleased to have been selected by Saudi Arabian Airline' Technical Services Division as a potential strategic partner to help achieving this objective."

Saudi Arabian Airlines’ is an IATA Operational Safety Audit (IOSA) operator. Its Technical Services Division has more than 45 years of experience in fleet modernization, engineering, planning, maintaining and overhauling various types of aircraft, engine and components. Today it is providing its services to many customers around the world. Saudi Arabian Airlines’ Technical Services Division is a Repair Station approved by the Kingdom of Saudi Arabia General Authority of Civil Aviation (GACA), European Aviation Safety Agency (EASA) and the Federal Aviation Authority (FAA).

Saudi Arabian Airlines’ Technical Services Division is capable of overhauling L1011, B737-200, A300-620 aircraft, and MD90 aircraft at the airframe facilities and in addition at its engine facility, overhauling of JT9D, RB211B2, RB211D4, RB211C2 and V2500 engines is successfully carried out. As it enters a new era, it is now expanding its services to include the overhaul of the B777 aircraft as well as GE90, CF34 & CFM56 Engines and in the process of building a new facility with 12 bays for aircraft maintenance.

Air France Industries and KLM Engineering & Maintenance, who joined forces following the Air France KLM merger, are world-leading multi-product MRO (Maintenance, Repair, Overhaul) providers with a joint workforce of 15,000 employees, offering comprehensive repair capability, integration expertise, component pool operational support and a powerful logistics network. Together they support more than 900 aircraft and serve upwards of 150 major international airlines.