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Qatar Airways unveils new Saudi domestic carrier, Al Maha Airways

Qatar Airways (QR, Doha Int'l) will enter the Saudi Arabian domestic market in the first half of 2014, CEO Akbar Al Baker says.

The Qatari carrier's new Saudi subsidiary will be known as Al Maha Airways (Riyadh) and will initially serve Jeddah and Riyadh before branching off into the Kingdom's second-tier cities. Gulf Air (GF, Bahrain) was also chosen to offer domestic services but has yet to announce any official launch plans. "We have chosen the name of the Saudi carrier ... Al Maha Airways. We hope to start operations in the first half of next year," Baker told Reuters at the Dubai Airshow. Al Baker did however point out the various operating obstacles associated with the Saudi market, in particular the issue of fare caps and fuel subsidies for state-backed carrier Saudia (SV, Jeddah

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