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

UN Secretary General Ban Ki-moon and Saudi Arabia’s permanent representative to the UN Abdullah Al- Muallami unveiled a beautifully framed old kiswa (covering) of the door of the Holy Kaaba at one of the newly refurbished halls of the world body. The...
A policeman was shot dead by an unknown gunman in Qatif in the Eastern Province on Tuesday night.According to a spokesman of the Eastern Province police, the firing took place at 11:30 p.m. in a suburb called Al-Jishi.The targeted police officer was...
JEDDAH: Jeddah Show, one of the many events of Jeddah Summer Festival 36, is attracting a large number of visitors. The sound-and-light show is being run at the Jeddah International Exhibition and Convention Center.The show tells the story of the Bri...
JEDDAH: The Riyadh Traffic Department carried out extensive campaigns on the main streets, intersections and squares in the city to boost traffic safety levels and discourage bad driving.During the first 72 hours of the campaign, traffic personnel re...
RIYADH: One of two women infected with the Middle East Respiratory Syndrome coronavirus (MERS-CoV) died here in Riyadh, while the other patient is being treated at a hospital in Al-Kharj, some 60 km from the capital. Since June 2012, the Ministry of...
AL-AHSA: Approximately 20,000 tons of Al-Ahsa dates are planned to be marketed abroad during the new dates season.Muhammad Ismail, director general of the King Abdullah City for Dates (KACD), said: “The authorities in the city are planning to increas...
JEDDAH: Al-Bagdadiya neighborhood residents in Jeddah are living in a state of worry because of 20 abandoned houses, which serve as hideouts for criminals.Residents said some houses are on the verge of collapse and have turned into shelters for crimi...
JEDDAH: A committee consisting of representatives from the Hail governorate, municipality, health department and the Saudi Food and Drugs Administration (SFDA) has ordered the closure of a restaurant in the city’s industrial area.Twelve people suffer...
The board of the Saudia Standards, Metrology and Quality Organization has announced that mandatory application of the regulations on new tires produced or sold in the Kingdom will commence in November this year.The board explained that the technical...
JEDDAH: The number of people with mental health issues or depression is increasing in Saudi Arabia due to urbanization, marital or relationship problems, and not being able to keep up with rapid progress. A Saudi mother said that her daughter suffers...
JUBAIL: Jubail beaches are expected to receive many tourists during September as a large number of people usually head to the city once the summer gets cooler to enjoy their holiday here.As part of the beach preparations for this season, the Social S...
RIYADH: More than 50 percent of vehicle users in the Kingdom are not satisfied with the after-sales service of auto agencies in the Kingdom.In a survey conducted by the Ministry of Commerce and Industry (MCI) to evaluate the performance of automobile...
JEDDAH: The Appeals Court has upheld the verdict issued by a specialized penal court which sentenced Dr. Said bin Zair to four years in prison from the date of his arrest in 1428.According to the ruling, the academician is also banned from traveling...
JEDDAH: Health authorities in the Eastern Province are expected to issue a decision soon against four Saudi nurses accused of “negligence” for an incident which led to the amputation of the hand of a Saudi girl after they tried to insert a needle in...
JEDDAH: The Jeddah municipality has closed down a popular restaurant following the discovery of a rat rummaging through food items.The rat act was captured on video and posted on social media websites. It went viral, prompting the authorities to laun...

Stay Connected

Facebook