Domestic air fares to go up 10%



JEDDAH: ARAB NEWS

Published — Friday 21 December 2012

Last update 21 December 2012 1:03 am

| نسخة PDF Print News | A A

Investors in the aviation sector expect a 10 percent increase in air ticket prices on domestic routes in the Kingdom following the new air ticket regulations approved by the Council of Ministers last Monday.
“We expect a 10 percent rise in ticket prices in the first phase when the new regulations are applied and prices will go up further at later stages,” said Nasser Al-Tayyar, managing director and CEO of Al-Tayyar Group.
He said the Cabinet decision to revise jet fuel prices would definitely reduce the operation cost of airlines. “This will create greater competition among airlines and encourage more investment in the sector,” he told Al-Eqtisadiah Arabic daily.
Al-Tayyar said fair competition would lead to the success of the Kingdom’s aviation market. He called for bringing Saudi Arabian Airlines’ domestic flights under a separate company for the benefit of passengers.
Faisal Al-Turki, vice president of Nesma Airlines, said jet fuel prices in the Kingdom were 30 percent higher than in some airports of other countries in the region. “The decision to review the fuel prices will increase profits of aviation companies,” he added.
Al-Turki said lower jet fuel prices would enable airlines to operate their flights at a reasonable cost. “An increase in ticket prices will enable airlines to extend better services to passengers,” he pointed out. It will also pave the way for the development of the Kingdom’s aviation sector. Mohsen Al-Najjar, an economist and air transport specialist, commended the Cabinet for giving more powers to the General Authority of Civil Aviation to fix air ticket prices and improve airport services. He emphasized the need for airline companies operating domestic flights to control their expenditure.
“There is no point in some companies operating wide-bodied aircraft to operate domestic flights and ask passengers to share the cost of its expenditure,” he said.
Al-Najjar said the decision to cut jet fuel prices would benefit the Kingdom as more airlines would be encouraged to fill their aircraft with fuel from Saudi airports.
Last Monday, the Saudi Cabinet approved a comprehensive strategic plan for GACA, including plans to upgrade the Kingdom’s airport facilities and increase domestic ticket prices.
The Cabinet, chaired by Crown Prince Salman, deputy premier and minister of defense, approved a committee to revise fuel prices at Saudi airports, said Culture and Information Minister Abdul Aziz Khoja.
The minister said: “GACA will be enabled to practice its responsibilities and specializations to manage and operate airports,” adding the authority would establish a guideline for ticket prices.
“GACA will prepare the ticket price guideline in coordination with the Ministry of Finance, and it will replace the current price system,” he said.
Under the new plan, GACA will expand operations at the Kingdom’s airports with participation from national and international corporations.
Prince Fahd bin Abdullah, president of GACA, thanked the Cabinet for approving the plan. He said the ticket price guideline referred to economy class tickets on domestic routes in the Kingdom, adding they would be based on prices fixed by the government.
“The price of economy tickets will stay the same until a change is announced at a later date,” the prince said, adding there has been no change in economy class ticket prices for a long time.

What's happening around Saudi Arabia

RIYADH: The Ministry of Education (MoE) has allocated over 180 clinics for schools in Riyadh and directed all its departments across the Kingdom to recruit health advisers at schools with more than 100 students.Work has already started on introducing...
RIYADH: The Moroccan experience in desert tourism is largely similar to that of Saudi Arabia, which boasts of a unique diversity in culture in its different regions, Prince Sultan bin Salman, president of the Saudi Commission for Tourism and National...
JAZAN: Deputy Crown Prince Mohammed bin Salman visited the advanced field hospital of the Armed Forces in Jazan on Tuesday.He was reassured about the injured in the ongoing battle. He conveyed the greetings of Custodian of the Two Holy Mosques King S...
JEDDAH: The planned “North Thunder” military exercise is a clear message to Iran and the countries in the region it supports that any hostile intentions and actions will be firmly dealt with, an expert has said.The military drill is scheduled to be h...
RIYADH: Syrian conjoined twins will be separated at the King Abdullah Specialist Children’s Hospital at the King Abdul Aziz Medical City (KAMC) in Riyadh on Sunday.According to a KAMC spokesman, the forthcoming surgery will be the fourth and final st...
JEDDAH: Education Minister Ahmed Al-Issa has issued an order to establish a department for school security. It will be be linked organizationally to the general supervisor of school safety and security at the ministry.According to the decision, schoo...
JEDDAH: From delivering mails for Saudi Aramco to captaining Saudi Arabian Airlines’ first flight to New York, Jazza Al-Shammari’s career story is unique.“I started my career as a postman with Saudi Aramco in 1959 and continued the primary studies at...
RIYADH: A team of the King Faisal Specialist Hospital & Research Center (KFSHRC) has identified a gene responsible for cardiomyopathy.Dr. Zuhair bin Nasser Al-Hasnan, KFSHRC medical genetics consultant, said the team conducted a study on a Saudi...
JEDDAH: The Pakistan Welfare Society (PWS) organized a free medical camp and discussion on health for women at the Pakistani Consulate recently.Doctors and specialists diagnosed patients and distributed free medicines to needy patients, and arranged...
JEDDAH: Yemen Vice President and Prime Minister Khaled Bahah has thanked Saudi Arabia for standing by his country during tough times.Speaking at the World Government Summit in Dubai on Tuesday, he said: “Our GCC brothers, particularly Saudi Arabia, s...
RIYADH: Saudi Arabia joined the rest of the world in intensifying public awareness on cancer with activities spread over the week supporting the global cause that aims to save millions of lives every year by raising awareness and education about the...
RIYADH: Chairman of ACWA Power International Mohammed Abu Nayyan thanked King Mohammed VI of Morocco for personally inaugurating Morocco’s first solar power plant, Noor1, built by an international consortium led by his company.“We were extremely priv...
RIYADH: The Ministry of Health is considering imposing an asset declaration as well as an absence of interest conflict testimony on its employees as a measure in fighting corruption.Health Minister Khalid Al-Falih made the announcement at a one-day f...
DAMMAM: Abdussalam Kanniyan, chairman of the International Indian School in Dammam (IISD), has been honored with the “Person of the Year 2015” award by Vatakara NRI Forum, a community group in the Eastern Province.The award was based on his outstandi...
RIYADH: Andrej Plenkovic, the leader of the European Parliament Foreign Affairs Committee delegation, on Tuesday hailed Saudi Arabia for its yeoman services in looking after the displaced Syrians in countries such as Lebanon, Jordan and Turkey.“We fu...

Stay Connected

Facebook