JEDDAH, 6 December 2006 — The board of directors of the General Authority of Civil Aviation (GACA), which was chaired by Crown Prince Sultan, yesterday licensed National Air Services (NAS) as a private airline based in Riyadh to operate domestic flights in the Kingdom, acccording to Abdullah Ruhaimy, president of GACA. Speaking to reporters after the meeting, he said the board would license the second airline, which would be based in Dammam, after 45 days.
Prince Sultan announced in April that the government would license two private airline companies shortly to operate domestic flights and cargo services alongside state-owned Saudi Arabian Airlines.
Sultan 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.
Ruhaimy also said the new desalination plant at King Abdul Aziz International Airport in Jeddah and another project to develop the airport’s Haj Terminal would be implemented on a build, operate and transfer (BOT) system.
“The Supreme Economic Council has already approved implementation of these projects with the support of the private sector,” he said, adding that GACA would adopt the same strategy on implementing most of its projects.