Saudi Arabia plans to open up its skies to foreign airline companies by allowing them to fly domestic routes, the country’s General Authority for Civil Aviation (GACA) has said.
The decision will open the market to players other than state-owned Saudi Arabian Airlines (Saudia) and private National Air Services, which are struggling to meet high demand.
In a statement carried by the state news agency, GACA said it will let both local and foreign companies apply for licences to operate domestic flights by the end of January.
Saudia and National Air Services, a lower-cost private carrier, now serve a domestic market of an estimated 27 million people, but with a price cap on domestic flights, private airlines have struggled with their profit margins.
“We’ll not insist that they operate from specific airports and will give them multiple options, including free selection of domestic routes. Licensed airline companies will be able to operate international flights within the limits of bilateral agreements,” the GACA statement said.
The licensed company will have the freedom to choose any Saudi airport as its hub and also to operate international flights.
GACA said tenders would be invited in the third week of January from Saudia and foreign airline companies as well as foreign investors to operate domestic and international flights from Saudi airports.
“GACA is now working with a specialised consultant to complete some procedures related to tenders to select and license new operators,” Assistant Minister of Defence and Aviation and Inspector General for Civil Aviation Affairs, Prince Fahd Al-Abdullah, said in a statement.
He hoped that an announcement inviting tenders could be made by January 23.
GACA said it would provide airline companies that make the best offer with all facilities to operate domestic and international flights successfully.