November 2005 
Volume 04, Issue 7 
Integrated Defense Systems

In it for the long run

Partnership between Saudi Arabia's Alsalam, Boeing still growing


What began as an industrial participation agreement 17 years ago today continues to grow into a world-class aviation solutions provider for civil and defense aircraft operators in the Middle East.

Mohammad N. Fallatah of Alsalam Aircraft Company

A cultural business exchange

As part of a cultural business exchange, Mohammad N. Fallatah, Alsalam Aircraft Company's president and CEO, spent some time this year at the Boeing Leadership Center near St. Louis. While there, he shared business practices, talked about ethics and business strategy, and exchanged experiences with Boeing leaders during a Boeing Executive Program course.

"Collaborative learning was very beneficial for me during the week-long course," Fallatah said. "I am looking forward to sharing the things I learned here [in St. Louis] with my leadership team at Alsalam. It is very important to maintain values and perform to a certain standard in the workplace. The Boeing Leadership Center offers so much for management teams that participate in its program; I am very happy to have had an opportunity to participate."

The collaborative experience also helps strengthen the relationship between Alsalam and Boeing.

Fallatah oversees three business units at Alsalam and is in need of business support to continue the development and growth of employees. Bringing the lessons he learned at Boeing back to Alsalam is something that will help his company, he said.

"With the immense growth of our company, it is very hard to keep a consistent set of standards for employees," Fallatah said. "This experience at the Boeing Leadership Center is one I found very rewarding."

—Lewis Brinson

Linking Asia, Europe and Africa, Alsalam Aircraft Company is strategically located in Riyadh, Saudi Arabia, in the heart of the Arabian Peninsula. It partners with The Boeing Company through Boeing Industrial Technology Group (BITG, a separate Boeing entity that invests in and supports the Saudi Arabian aerospace industry), Saudi Arabian Airlines, Gulf Investment Corporation, Saudi Advanced Industries Company and the National Industrialization Company. Privately owned Alsalam has grown its joint venture into a profitable and highly skilled maintenance repair and overhaul facility.

Seventy-five percent of Alsalam's business comes from the Saudi Arabian Ministry of Defense. The remaining 25 percent centers on commercial aircraft work for Saudi Arabian Airlines and other carriers.

"We have carried out maintenance and overhaul work on behalf of external companies, such as Kuwait Airways, Syrian Airways, Oman Air, Kapo Air, Space World International, Logistic Air and Ariana Afghan Airlines. We try to diversify our external business sources, particularly in our area of expertise—which is the Boeing 747, 737 and 727 aircraft," said engineer Mohammad N. Fallatah, the company's president and CEO. Since 1993, Alsalam has provided overhaul services for more than 230 airplanes, he added.

The potential aerospace market in Saudi Arabia for Boeing products is estimated at more than $10 billion. Saudi Arabia is one of the largest non-U.S. markets for military and commercial aircraft products.

"The Boeing Industrial Technology Group is a true partner," Fallatah said. "They have provided solutions, technology training and helped us make significant advancements in the development of capabilities and facilities that now provide military, commercial, and corporate and VIP (aircraft) technical services."

Certified by international regulatory organizations, Alsalam is working to increase the Kingdom of Saudi Arabia's self sufficiency in the aerospace market through technological investment and the development of Saudi nationals.

With more than 2,500 employees, Alsalam provides technical support for the Royal Saudi Air Force, namely for Boeing-built F-15 fighters and Apache helicopters. It also is looking to grow its capabilities to provide support for Airborne Early Warning and Control aircraft. From composite repair to interior modifications, Alsalam has a history of exceeding customer expectations.

"Boeing, through its involvement in BITG, is proud of its part in making Alsalam a strong and valuable company and a leader in the Middle East," said Marcus Hurley, regional director for Business Development, Middle East and North Africa for Boeing Integrated Defense Systems. "Boeing believes that its investment in BITG and thereby in Alsalam is good business and shows Boeing's commitment to the Kingdom of Saudi Arabia for the long term."


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