“We are seriously studying the prospects of allowing Gulf airline companies to provide transport services between the Kingdom’s cities,” said Khaled Al-Khaibary, spokesman of the authority. He said GACA was studying all aspects of the issue, adding that the authority’s top management has given utmost importance to the subject.

Al-Khaibary said the opening of Saudi skies to Gulf airline companies would improve domestic air transport services and boost the Kingdom’s social and economic development. “It will benefit citizens as well as foreign residents,” the spokesman said. He denied press reports that GACA would not allow Gulf airlines to operate domestic routes in the Kingdom.

Al-Hayat Arabic daily quoted a previous statement made by Prince Fahd bin Abdullah, assistant minister of defense and aviation for civil aviation affairs, that GACA would not license Gulf airline companies to operate flights between Saudi cities.

According to the newspaper, the opening of Saudi skies to Gulf airlines would have a negative impact on Saudi Arabian Airlines. “The Gulf airlines are supported by their governments and Saudi national airlines will not be able to compete with them,” the paper said.

In accordance with international aviation agreements, foreign airlines are not allowed to operate domestic flights, the paper said.

But Al-Khaibary said GACA had presented a proposal to the Supreme Economic Council to open the Kingdom’s skies, allowing new airlines to operate domestic flights. “We are awaiting the council’s decision on this proposal,” said Al-Khaibary.

He also pointed out that the GACA had received two applications from Saudi companies to operate domestic flights. “Previously we had received several applications from Saudi and Gulf companies requesting licenses to operate flights in the domestic sector,” he said.

“GACA wants to open up the Kingdom’s domestic air transport market to find feasible solutions to current transportation problems.”

He said the authority is seeking more foreign airlines to operate international flights from Saudi airports. “We are now working on operating direct flights from Tabuk and Abha to Cairo,” he explained.

He said the arrival of new foreign airlines would create more job opportunities for Saudis and facilitate optimum use of the Kingdom’s airports. “It will also help passengers to obtain flights to the destinations they want to fly to at any time without restrictions.”

The number of passengers traveling to the Kingdom has increased substantially in recent years. They include more than 5 million pilgrims who come to perform Haj and Umrah in addition to guest workers.

According to a report issued by the National Commercial Bank, the Kingdom's tourism industry earnings from international travelers will reach SR80 billion by 2015. “The largest share of inbound tourism is religious tourism as people from across the world visit Makkah and Madinah to perform Haj and Umrah. During 2009, religious tourism trips accounted for 47.1 percent of all trips to the Kingdom,” the NCB report said.