The General Authority for Civil Aviation (GACA) announced yesterday it would license new airlines this month to operate domestic and international flights by the end of 2013.

Khaled Al-Khaibary, GACA spokesman said the licensing process is in the final stage for six of the seven airline companies, reported Asharq Al-Awsat Arabic daily.

Al-Khaibary said, “We are currently studying proposals and analyzing their operational, technical and financial capability.

“We will announce the names of the successful airline companies this month. They will be asked to fulfill economic and safety requirements before March 2013,” he said.

Aviation sources speculate Saudi Arabia, the largest air travel market in the region, can accommodate additional airlines to meet growing demand. They believe the licensing of new airlines would increase competition and result in improved customer service. The Kingdom’s air travel market accounts for 13 percent of the Middle East region.

Haj and Umrah attract millions of Muslims from around the world and Saudi Arabian Airlines said it would transport nearly one million Haj pilgrims this year.

More than 53 million passengers traveled through the Kingdom’s airports in 2011 and 950,000 flights were recorded.

Commercial aviation specialists say fuel prices at Saudi airports may constitute a hurdle for international airlines. They call for equal treatment with Saudia for fuel rates and say such a move would liberate the air industry and encourage new airlines to operate domestic flights.

Fuel spending constitutes 42 percent of airline operational costs in the Kingdom while the international rate is 29 percent.

Nasser Al-Tayyar, a commercial aviation expert and owner of an airline company, said airlines avoid fueling at the Kingdom’s airports because of high prices. He warned new airlines would not be able to operate under the current fuel pricing.