Al Tayyar Travel Group’s contract with the ministry of education is still ongoing and is set to last until 2018, said Nasser Al Tayyar, vice president of the company. 
 
The contract contributes to 30 percent of the group’s sales. However, Al Tayyar is seeking to diversify its sources of income to hedge against any contract-relevant changes, he was quoted as saying by CNBC Arabiya.
 
The Saudi-based company seeks to cut airline ticket prices by 10-25 percent during summer on lower oil prices, Al Tayyar noted.
 
The company’s SAR 2 billion capital hike will be used to finance expansions and enhance the company’s financial position, he added. 
 
Al Tayyar has already allocated SAR 300 million to finance acquisitions of peer companies. The group’s acquisition of a five-star hotel in Makkah will be financed by an 11-year loan facility, which will be repaid from the group resources, in addition to a portion of the capital increase proceeds.
 
Based on its well-positioned liquidity, the company can secure new loan facilities to cover its future expansions, Al Tayyar said.
 
The group also invested SAR 50 million in Heritage Hotels, expecting a 25 percent return on investment to be reflected in 2016.
 
Commenting on the company’s earnings, Al Tayyar said that Saudi operations contribute to 80 percent of the group’s earnings. Meanwhile, religion tourism from Egypt contributes 9 percent annually, while earnings from Egyptian operations rose 12 percent last year. 
 
Moreover, the company’s online booking service has been recently launched as part of its SAR 50 million investment in e-services.

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