JEDDAH, 26 April 2006 — Crown Prince Sultan yesterday announced the government’s plan to license two private airline companies shortly to operate domestic flights and cargo services alongside state-owned Saudi Arabian Airlines. “The General Authority of Civil Aviation (GACA) will soon invite those who want to invest in this sector to present their applications,” he said, adding that two companies based in Riyadh and Dammam would be selected.
In a statement after presiding over a meeting of GACA’s board of directors in Riyadh, he said the board had agreed on the timeframe to issue such licenses as well as the standards set for private airline companies.
He said the new private carriers would be allowed to provide services such as transportation of passengers, goods and posts between the Kingdom’s airports. “The move comes in line with the civil aviation authority’s efforts to promote air transport services in the Kingdom by creating competition among airline companies,” the Saudi Press Agency quoted the crown prince as saying.
Sultan also hoped that the arrival of private airlines would help provide more seats to the growing number of passengers, especially pilgrims intending to perform Haj and Umrah and people visiting tourist resorts in various parts of the Kingdom.
A number of aviation companies have expressed their desire to operate domestic flights. Sama is one of them. Prince Bandar ibn Khaled Al-Faisal, chairman of Sama, said recently that paperwork related to the licensing procedure was proceeding well.
Prince Bandar said his airline would cover all routes in the Kingdom as well as those in the Gulf and North Africa. Sama intends to operate Boeing 737-300 aircraft with an economy-class configuration in line with the prevailing trend seen in low-budget airlines.
National Air Services (NAS) is another company eying the Saudi domestic aviation market. NAS recently launched its Al-Khayala VIP service. Khalil A. Kordi, its chairman, said Al-Khayala would operate four scheduled flights per day between Riyadh and Jeddah from Saturday to Wednesday, along with charter flights on weekdays, weekends and official holidays to regional tourist destinations. Each round-trip will cost SR3,000.
Al-Tayyar Travel Group is also seeking a license to operate a private airline in the Kingdom. “We have already presented an application to the government to license a domestic airline company,” Nasser Al-Tayyar, CEO of the group, said last year. He said the new company would have an initial capital of $50 million, adding that it would start operating domestic flights within six months after receiving the license.
Al-Tayyar said his group was waiting for the government’s privatization plans for Saudi Arabian Airlines. “We are 60 percent ready in terms of infrastructure facilities required for airline operations,” he said, adding that there is an existing network of 150 branches in the Kingdom and abroad.
