DAMMAM, 27 February — An aviation industry expert has estimated that King Fahd International Airport in Dammam is losing SR100 million annually as a number of foreign airline companies had shifted their operations to Bahrain. He said this was because the airport administration as well as the Presidency of Civil Aviation failed to adopt a healthy marketing strategy to encourage and keep foreign airlines.
The airport authority's tough posture with regard to foreign airlines made at least 12 companies discontinue operations from KFIA, the Al-Watan newspaper quoted an informed source as saying. According to reports, KFIA officials were under pressure from Saudi Arabian Airlines, which influenced policy decisions at the airport, to favor its operations. However, Saudia's efforts boomeranged resulting in a loss of about 140,000 passengers for the airline last year.
Increasing number of passengers in the Eastern Province, particularly in Dammam and Alkhobar, preferred the Bahrain International Airport mainly because it is closer. This development, undoubtedly, reflected on the revenue of the new Saudi airport. The fall in the number of passengers resulted in an estimated loss of airport fees worth SR7.5 million at the rate of SR50 per passenger. The airport tax at Bahrain is only SR30.
The source said another reason for foreign airline companies preferring Bahrain was the refusal by the Presidency of Civil Aviation to allow increased number of flights. The PCA rejected the requests on grounds that the current number of flights was sufficient, but it did not foresee that an increase in the number of flights would boost airport revenue.
By rejecting applications for more flights, the PCA blocked maximum exploitation of the huge investment in the airport project. The airport also was deprived of additional revenue through fees levied from service companies. The difficulties faced by the foreign airlines in opening offices at the airport deprived many Saudis of employment opportunities.
