Al Tayyar sets aside SAR 300 mln for annual acquisitions, says CEO

Al Tayyar Travel Group sets aside SAR 300 million annually for acquisitions in order to diversify its sources of income, said chief executive Nasser Al Tayyar.

The agreement that the group has with Saudi Arabia’s ministry of education is still in force, contributing 28 percent to the group’s total sales, he added.

The board of directors approved allocating SAR 300 million annually to pursue acquisitions and seek new investments, Al Tayyar was quoted as saying in CNBC Arabiya.

He also pointed out that if oil prices continue to drop, airlines should cut their ticket prices since oil costs represent around 20 to 50 percent of ticket value, varying from one airline to another. 

He added that he expects airlines to modify their prices in the coming contracts during 2015, or early 2016.