National Carrier

Recently, the warring factions in Yemen have added a new issue to the long list of problems they have exacerbated over the ten years of conflict. The new issue concerns Yemenia, the national carrier of the Republic of Yemen. Yemenia was established following the merger of the northern and southern Yemen airlines on May 15, 1996, a merger that was more akin to acquisition and liquidation than integration. This occurred shortly after the 1994 Summer War between the partners of unity, just four years after the declaration of unity between the two regions and the establishment of the Republic of Yemen on May 22, 1990.

In this discussion, the Center for Summaries takes you through a series of facts to assess the state of Yemenia, the national carrier, and many related issues.

Yemen Airways

In northern Yemen, the Kingdom of Yemen's government in Sana'a purchased two Dakota DC-3 aircraft in 1949. These aircraft were used to transport Imamate leaders, mail, and occasionally businessmen between important cities in northern Yemen. At that time, they were considered property of Imam Ahmad Hamidaddin. On August 4, 1961, the Yemen Airways was established during the last years of the Imamate regime. It began operations after the September 26, 1962 revolution and the declaration of the Arab Republic of Yemen in northern Yemen. It was granted a new air license on August 4, which remains valid today, making it the country's official carrier. In 1965, the company acquired four additional Dakota aircraft and began flights to Taiz, Hodeidah, and some regional destinations like Djibouti and Asmara, later adding new domestic routes to Al-Bayda, Marib, and Kamaran.

In 1967, Yemen Airways entered into a partnership with the United Arab Airlines, which lasted until 1972. During this period, it was known as the Arab Yemen Airways. The company was restructured and renamed Yemenia in 1972.

In March 1975, Yemenia's fleet consisted of four Douglas DC-6 and four Douglas DC-3 aircraft. The company operated flights to domestic and international destinations including Asmara, Cairo, Djibouti, Dhahran, Jeddah, and Kuwait. Yemenia leased two Boeing 737-200 aircraft from the Global Airlines for two and a half years before purchasing a Boeing 737-200 in mid-1976. In April 1978, an agreement was signed with British Midland Airways (BMA) to supply two Boeing 707-320Cs, including aircraft crews and engineering support.

On July 1, 1978, Yemenia was restructured, with the Saudi government acquiring a 49% stake and the Arab Republic of Yemen retaining a 51% stake.

Yemen Democratic Airlines (YEMDA)

In southern Yemen, Yemen Democratic Airlines (YEMDA) was established as the national carrier for the People's Democratic Republic of Yemen after the nationalization of the private Brothers Air Services (BASCO), owned by the Baharoun brothers. This occurred four years after independence and the departure of the last British soldier from Aden and southern Yemen on November 30, 1967. YEMDA, named after the initials of the state, began with Douglas DC-6 and de Havilland Canada Dash 7 aircraft, and Boeing 707s. By 1994, most of YEMDA's fleet was Airbus A300s. From its headquarters at the former Khormaksar Airbase at Aden International Airport, YEMDA operated a network of flights throughout Africa and the Middle East. YEMDA was wholly owned by the former People's Democratic Republic of Yemen and had a significant inventory of aircraft spare parts, engines, generators, cranes, and buses.

Merger and Liquidation

On May 15, 1996, following the 1994 Summer War between the unity partners, which erupted four years after the declaration of unity and the formation of the Republic of Yemen, the regime of former President Ali Abdullah Saleh, victorious in the civil war, decided to merge the two airlines. This merger subjected YEMDA's assets to what can be described as a process of exploitation, liquidation, and wastage.

Following the merger, Yemenia's Chairman at the time, Hassan Sobhi, stated that Saudi Airlines retained a 49% share in the new company, while the Yemeni government retained 51%. He confirmed that the new company would operate 12 aircraft, including two Airbus A310-300s, scheduled for delivery in 1997.

Despite Saudi Arabia owning nearly half of Yemenia's capital, the company's growth, expansion, and prosperity remained stalled and hampered by mismanagement, corruption, and favoritism. This occurred despite the company possessing promising personnel and opportunities, and strategically located stations and airports, which Yemenia and Yemen were deprived of in favor of other regional airlines.

Saudia Airlines

In January 2008, Yemenia, in partnership with the Islamic Corporation for the Development of the Private Sector (ICD), an affiliate of the Islamic Development Bank, established Saudia Airlines with a capital of $80 million. The ICD owned 75% of the company, while Yemenia held the remaining shares.

Ground Services Company

On January 15, 2009, Yemenia's Board of Directors approved the establishment of a Ground Services Company aimed at transforming aviation services across all airports in the Republic. This decision was part of efforts to mitigate the effects of the global financial crisis, in parallel with discussions between Yemeni and Saudi parties about the possibility of setting up a maintenance company affiliated with Yemenia. Plans were also discussed to improve the company's performance in light of the global financial crisis and its impact on airlines worldwide, including Yemenia, and how to overcome these challenges.

Aircraft Accident

The worst incident for the company occurred when Yemenia's Airbus A310, Flight 626, crashed on June 30, 2009. The flight, en route from Sana'a to Moroni, Comoros, had 153 people on board, all of whom perished, except for a young girl who survived.

Yemenia's Fleet Before the War

Before the outbreak of the current war, Yemenia owned six aircraft: five Airbus A320s (models 7O-AFA, 7O-AFB, 7O-AFC, 7O-AFD, and 7O-AFF) and one Airbus A330 (model 7O-AFE). The airline operated numerous domestic flights between Yemeni cities and many international regional and global flights to various international airports.

During the Current Conflict

Since the Houthi takeover of the Yemeni capital Sana'a on September 21, 2014, and the subsequent launch of the Saudi and Emirati-led coalition operations on March 26, 2015, Yemenia has not been spared from the consequences of the conflict. The war has led to the destruction of Yemen's airport infrastructure, including those in Sana'a and Aden, and damage to Yemenia's facilities. This has severely impacted local, regional, and international flight operations. The airline has experienced a sharp decline in flights and destinations, affecting travelers, the internal and external air transport sector, travel agencies, and tourism in Yemen. The financial situation of the company has deteriorated significantly, with substantial losses exacerbated by reduced demand and increased operational and insurance costs, despite ongoing efforts to adapt, improve services, and regain passenger trust.

Airport Restrictions in Yemen

On August 9, 2016, the Saudi-led coalition closed Sana'a International Airport to commercial flights, depriving civilians of their right to travel. This particularly impacted patients in urgent need of medical care outside Yemen and students pursuing studies abroad. It also obstructed the entry of commercial goods and humanitarian aid. On November 6, 2017, the coalition decided to “temporarily close all Yemeni air, sea, and land ports,” which included Sana'a International Airport, as well as the airports in Aden and Seiyun. The closure followed a missile attack by the Houthi group on November 4, 2017, which was intercepted by Saudi forces near King Khalid International Airport in Riyadh.

The closure of Sana'a International Airport led to the deaths of numerous Yemenis with serious illnesses, including cancer, liver, kidney diseases, and thalassemia. Thousands of travelers were forced to use Aden or Seiyun airports, necessitating land travel by bus for between 9 to 22 hours due to numerous checkpoints set up by the warring parties. Buses had to navigate uncharted and unpaved routes to avoid front lines and militarily restricted areas.

Waleed Al-Maliki, Yemenia's Director of Operations Safety – Ground Services at Sana'a International Airport, told the organization Muwatana: “Only three aircraft from Yemenia’s fleet remain operational. The Saudi-led coalition allows these aircraft to land and take off for only two to four hours a day, which reduces daily flights and delays booking for subsequent flights.”

The coalition's decision to close the airports also affected the delivery of humanitarian aid to Yemen. Médecins Sans Frontières (Doctors Without Borders) stated on November 8, 2017, that the Saudi-led coalition had prevented its planes from reaching Yemen since the closure announcement, “directly impeding the organization's ability to provide life-saving medical and humanitarian aid to those in urgent need.”

Sana'a Airport remained completely closed for nearly six years before partially reopening for limited flights to a single destination under a ceasefire agreement signed by the parties on April 2, 2022. Similarly, airports in Yemen controlled by the internationally recognized government, including Aden and Seiyun, remained restricted for commercial airlines, only partially open to limited destinations for Yemenia flights, which were few in number and did not meet even the minimum travel needs of over thirty million Yemenis, exacerbating the suffering of civilians even with the ceasefire and reduction in hostilities.

Corruption, Mismanagement, and Obsolescence

In addition to the war and its consequences, and the restrictions imposed by the warring parties on freedom of movement, various groups, especially women, faced constant restrictions on their right to travel within Yemen and through its partially open airports. The black market for seat reservations, ticket speculation, and manipulation of travelers thrived in the absence of modern booking and payment systems, exacerbating corruption, exploitation, and mismanagement in an environment lacking oversight and accountability.

Decisions by the Central Bank in Aden

Yemen was on the brink of signing a peace roadmap after UN envoy Hans Grundberg announced on December 25, 2023, that the warring parties had agreed to a set of measures including a nationwide ceasefire, improving living conditions, paying all public sector salaries, resuming oil exports, opening roads in Taiz and other parts of Yemen, and continuing to ease restrictions on Sana'a Airport and Hodeida Port. These measures were part of a confidence-building package aimed at resuming a comprehensive political process under UN auspices, establishing lasting peace in Yemen.

However, Yemen was pushed back to the edge of a dangerous escalation through economic means, exacerbated by regional and international developments following the October 7, 2023, Palestinian factions' attack on Israeli settlements in the Gaza Envelope, the subsequent Israeli war on Gaza, and the series of attacks by the Houthi group allied with Iran and Palestinian factions on ships navigating to and from Israel via the Bab al-Mandeb Strait and the Red Sea since November 19, 2023. The escalation continued with Operation "Shield of Prosperity" by the US-UK coalition, starting January 11, 2024, targeting numerous sites in Sana'a, Hodeida, Al-Bayda, Taiz, and other Yemeni areas under Houthi control. The US administration's opposition to the peace process, as indicated by its envoy to Yemen, emerged as a significant factor.

In response, the Yemeni anti-Houthi parties, within the Presidential Leadership Council and the internationally recognized government, viewed the sudden shift in the US stance as an unprecedented opportunity to gain advantages. They sought to rebalance the power dynamics militarily, security-wise, and politically, focusing on confronting Houthi escalation in the Red Sea and Bab al-Mandeb Strait. The Yemeni government issued decisions to finalize the transfer of financial and economic decision-making to Aden, previously blocked by a US veto since President Abd-Rabbu Mansour Hadi's decision on September 18, 2016, to relocate the Central Bank from Sana'a to Aden. Despite the impact of this decision on the banking sector and public employee salaries, the US veto had ensured communication channels remained open between the banks in Sana'a and Aden until recently. The escalation reached a peak with the Houthi group's sudden moves, including the unfreezing of the file of detained US embassy staff, which had been dormant for years, and a broad arrest campaign targeting over 35 international and local staff and diplomatic missions.

The internationally recognized government in its temporary capital, Aden, also decided to halt the sale of Yemenia tickets through its offices and agents in Sana'a and other areas under Houthi control, amidst the ongoing struggle between the parties over revenues, management, and operations.

Houthi Seizure of Yemenia Aircraft

In response to the internationally recognized government's decision and the Central Bank in Aden to halt the booking of Yemenia Airlines tickets through its offices and agents in Sana'a and other Houthi-controlled areas, the Houthi group seized four Yemenia aircraft along with their crews on June 25, 2024, at Sana'a International Airport. The planes were being prepared to return pilgrims to Yemen after completing their Hajj. Yemenia had announced the transportation of over 8,000 pilgrims from Sana'a to Jeddah, Saudi Arabia, as part of an agreement signed in late May 2024 with the Yemeni Ministry of Endowments and Guidance, which aimed to transport over 12,000 pilgrims to the holy sites via five Yemeni airports, including Sana'a International Airport.

Kuwaiti Grant to Support Yemenia

Amidst the crisis faced by Yemenia, exacerbated by the partial and limited reopening of Sana'a International Airport, Kuwait announced on June 30, 2024, that it would provide Yemenia with three aircraft and two engines. This initiative was intended to alleviate the burden on the tens of thousands of Yemeni travelers affected by the operational and management issues of Yemenia, including the seizure of four aircraft at Sana'a Airport and the ongoing restrictions on all Yemeni airports for commercial flights.

Unexpected Breakthrough with Saudi Decision

On Monday, July 22, 2024, UN Special Envoy Hans Grundberg announced that he had received a written agreement between the internationally recognized Yemeni government and the Houthi group. The agreement included several measures to de-escalate tensions in the banking sector and with Yemenia Airlines. These measures included resuming Yemenia flights between Sana'a and Jordan, increasing the number of flights to three daily, and initiating new routes to Cairo and India. The agreement also called for meetings between both parties to address the administrative, technical, and financial challenges facing the airline.

This agreement, received by the UN envoy amidst threats from the Houthis to target Saudi airports and banks, likely forced Saudi Arabia to pressure its allies in the Presidential Leadership Council and the internationally recognized government into accepting the deal. It averted a dangerous escalation that could have pushed Yemen back into a new round of conflict, creating an opportunity to continue peace efforts by building on the progress made and maintaining the achievements towards a comprehensive and just peace.

Conclusions

Overall, the situation with Yemenia Airlines, including its structural, operational, financial, and administrative issues, reflects the broader challenges faced by institutions in conflict-ridden environments. These challenges are compounded by poor governance, corruption, outdated practices, and weak structures. Yemenia's struggles, exacerbated by the current war and its aftermath, serve as a live example of the detrimental effects of lacking a national project within the framework of a state and the consequences of ongoing conflicts combined with poor management and corruption.

The situation at Yemenia illustrates the shortcomings and inefficiencies of the dominant parties' approaches to public institutions, which continue to undermine them through mismanagement, corruption, and deteriorating services. This has severely impacted the dignity and welfare of millions of Yemenis, affecting their right to a decent life.

Evaluating and addressing these issues, from the smallest administrative unit to the largest institutions and government, is crucial. Reforming these structures and providing effective, modern, and transparent management can lay the foundations for national development, improving institutions, and fostering a state governed by the rule of law, justice, and human rights. Through such reforms, the resilience and advancement of societies, institutions, and states can be ensured even in the worst and best of conditions.