RIYADH, 20 March 2006 — Contracts to operate duty free shops in the Kingdom’s international airports will be awarded to private companies in November this year, according to Abdullah Ruhaimy, president of the General Authority of Civil Aviation (GACA).
“The authority is currently talking to an international company to support its efforts to call tenders for the contracts,” Al-Riyadh Arabic daily quoting the GACA chief as saying. He said a separate department would be set up to manage the shops.
Referring to the expansion of King Abdul Aziz International Airport (KAIA) in Jeddah, Ruhaimy said, “This expansion work is equal to building a new airport.” The $1.5 billion project is aimed at increasing the airport’s annual capacity to 21 million passengers.
The KAIA expansion involves the construction of two new terminals and renovation of the South Terminal, a new concourse with 25 gates, three connector buildings and an extensive upgrade of landside and airside infrastructure facilities.
He said plans were also under way to expand the airports in Bisha, Yanbu, Arar, Abha, Tabuk, Najran, Taif, Gurayat, Hail and Al-Jouf. “We also intend to establish a new airport in Al-Ula and install modern air navigation systems in some airports,” he said.
Asked about the authority’s plan to build four new passenger lounges at the Haj Terminal of Jeddah airport at a cost of SR200 million, he said the contract for the project would be awarded within six months.
“We have already completed financial, legal, technical and marketing studies regarding the project,” he added. Ruhaimy said the private sector, which currently provides operation, maintenance and cleaning services at airports, would play a greater role in the next phase.
Saudi Arabia has 27 domestic and three international airports, which have a capacity to handle 33 million passengers annually. King Fahd International Airport in Dammam is the largest.
Crown Prince Sultan, deputy premier and minister of defense and aviation, has reiterated the government’s resolve to improve airport services for both passengers and airline companies and bring the airports up to the highest international standards.
Prince Sultan also said that the new Civil Aviation Law had been drafted taking into consideration new developments in the world of civil aviation and the requirements of the dynamic and fast developing industry.
“The sector requires adequate rules and regulations in order to modernize, face competition and realize security and safety of aircraft at Saudi airports and in Saudi air space,” he added.
