The Saudi Arabian Airlines Corporation is an independent public institution that enjoys legal personality and is organizationally linked to the Prime Minister. Its headquarters is located in the Governorate of Jeddah, and the Council of Ministers may decide to relocate its headquarters to another place within the Kingdom.

The purpose of this institution is to carry out all air, commercial, and civil transport activities within the Kingdom and abroad, and to achieve this purpose, it has the following:

A- Exploiting all air transport routes.

B- Building, manufacturing, purchasing, selling, leasing, and renting aircraft and flying machines, air transport equipment and supplies, spare parts, and everything necessary for their operation.

C- Establishing, maintaining, and operating airports and air stations, warehouses, storage facilities, or receiving aircraft and flying machines of any kind, whether for its own account or for others.

D- Operating mechanical and electromechanical workshops, and trading in engines of all types and machines of all kinds.

E- Engaging in all matters related to photography, aerial cinematography, wireless communication between airports, weather reporting, agricultural monitoring, and aerial crop spraying.

F- Purchasing and selling real estate necessary to achieve its purposes and leasing and renting them.

G- Constructing buildings and structures and their accessories, whether permanent or temporary, that can yield direct or indirect benefits for the purposes of the institution.

H- Establishing and organizing institutes and schools for practical aviation education and air navigation, and training employees in the activities that fall within its purposes with the aim of creating a qualified Saudi element capable of performing all technical, administrative, and commercial functions related to the institution's purposes.

I- Managing, organizing, and preparing events, competitions, and exhibitions for aviation.

J- Carrying out all operations necessary to achieve the purpose for which it was established, and the institution may contribute or participate in any way with companies or entities that engage in activities similar to its own or that cooperate in achieving its purposes domestically or internationally, and may merge or affiliate with them.

The assets of the institution consist of:

• 1- The tangible assets owned or currently allocated to the Saudi Arabian Airlines Corporation.

• 2- The tangible or monetary assets contributed by the Public Treasury of the State.

• 3- The loans contracted by the institution.

• 4- The revenues generated by the institution from engaging in activities that fall within its purposes.

• 5- The gifts and donations accepted by the Board of Directors.

• The institution's funds shall be deposited in the bank or banks designated by the Board of Directors.

1- The Board of Directors of the institution shall be formed of a Chairman appointed by a decree from the Prime Minister, and the membership shall include:

• A- The General Director of the institution.

• B- No more than four individuals representing government entities, none of whom shall hold a rank lower than the (fifteenth) rank or its equivalent.

• C- Five individuals representing the private sector.

A decision from the Council of Ministers shall be issued to specify the entities referred to in paragraph (b) above and to appoint the representatives of the private sector mentioned in paragraph (c) above. The term of membership for government entities shall be (three) years, renewable, and the term of membership for private sector representatives shall be (three) years, renewable once.

The Chairman of the Council shall designate a deputy among the members of the Council referred to in paragraphs (b) and (c) in case of his absence.

2- The appointment of the Chairman of the Board of Directors of the institution, and the members of the Council referred to in paragraphs (b) and (c) shall be based on a nomination from the Chairman of the Council of Economic and Development Affairs.

3- The Board of Directors of the institution formed by the decision of the Council of Ministers No. (448) dated 25/10/1436 AH shall continue until the formation of the Board of Directors of the institution is completed in accordance with what is referred to in paragraphs (1) and (2) of this item.

The Board of Directors of the institution is the supreme authority that dominates its affairs and manages its matters, and sets the general policy that it follows without being bound by the administrative and financial systems followed in ministries and government agencies. It has, for this purpose, without limitation to its jurisdiction:

• 1- Issuing financial, administrative, technical, and internal regulations and decisions, including organizing and defining positions.

• 2- Proposing regulations related to the appointment of the authority's employees, its users, and its workers, their promotions, and determining their salaries, wages, bonuses, and any benefits granted to them, whether in kind or cash, and others without being bound by the systems and regulations related to that by a decision from the Council of Ministers. However, regarding retirement pensions, the institution is committed to applying the Civil Retirement Law for state employees, while the workers are subject to the labor and workers' regulations.

• 3- Approving the draft budget of the institution, and the budget shall not be effective unless ratified by a royal decree.

• 4- Approving the draft final account of the institution for the purpose of ratification by the competent authority as per the law.

• 5- Appointing senior employees of the institution, consultants, and experts, and determining their salaries, bonuses, and authorities.

• 6- Buying, selling, leasing, and renting aircraft.

• 7- Concluding agreements with institutions or companies that share the same purpose, and participating in conferences, organizations, and international bodies that specialize in civil or commercial air transport affairs.

The Council may form one or more committees from among its members and delegate some of its powers to them. It may also delegate the Chairman of the Council or the General Director of the institution some of its powers, and it may authorize one or more members to carry out a specific task.

1- The meetings of the Board of Directors are held at the headquarters of the institution, and may be held at another location within the Kingdom when necessary.

2- The Council holds its meetings periodically four times a year, and the Chairman of the Council may call for a meeting whenever necessary or upon the request of at least three members.

3- A meeting of the Council is valid if attended by the majority of the members, including the Chairman of the Council or his representative, and decisions are made by a majority of the votes of those present. In the event of a tie, the side that the Chairman of the meeting voted for shall prevail.

4- The deliberations and decisions of the Council are recorded in minutes signed by the Chairman of the meeting and the attending members.

5- A member of the Council may not abstain from voting or delegate another member to vote on their behalf in their absence. The objecting member has the right to record their objection and the reasons for it in the minutes of the Council meeting.

6- A member may not disclose any information they have learned about the institution's secrets due to their membership in the Council.

7- The Council may invite specialists and consultants to attend its meetings, without them having the right to vote.

The institution shall have a General Manager who is appointed and dismissed from his position by a decision of the Board of Directors of the institution. The decision of the Board of Directors shall specify his salary and other financial benefits.

The General Manager exercises the following competencies:

• 1- Preparing for the meetings of the Board of Directors.

• 2- Implementing the decisions issued by the Board of Directors.

• 3- Supervising the employees, users, and workers of the institution, in accordance with what is specified by the regulations.

• 4- Issuing the order for the expenses of the institution, and he may delegate others in this regard.

• 5- Supervising the preparation of the draft general budget for the institution and the draft final account, and the regulations specify the deadline for submitting the draft budget and the draft final account.

• 6- Without prejudice to the provisions of this law, the Chairman of the Board of Directors of the institution or his delegate is considered the highest reference for the General Manager.

The General Manager represents the institution in its relations with other persons and before the Judiciary, and acts on its behalf in accepting gifts and donations, as well as in concluding and signing contracts, all within the limits set by the provisions of this Law, the institution's regulations, and the decisions of the Board of Directors.

The institution shall have a budget independent of the state budget, and the institution's budget shall be prepared in the style of commercial budgets. The Board of Directors of the institution shall prepare an annual budget and accounts of profits and losses, along with a detailed report on the institution's activities during its financial year, and on its financial position at the end of that same year. The financial year of the institution shall be the same as the financial year of the state.