Qatar Airways will pay the same price for fuel as Saudi Arabian Airlines when it starts operating in the Kingdom’s domestic market at the beginning of next year, an official from the airway said here recently.

The Qatari official, who preferred to stay anonymous, said his company would soon complete the necessary paperwork to get the final licenses to operate locally. The company obtained an initial agreement from Saudi Aramco to pay the same fuel prices as Saudia.

The official said the agreement on fuel prices would support the company’s operations in the Saudi market. It would help liberalize Saudi airspace and boost the aviation industry.

“We expect to start operating our internal flights at the beginning of next year,” the source said. Negotiations are still under way between Qatar Airways and the General Authority of Civil Aviation (GACA) to determine operation points on the Saudi map, international flights, the number of planes, staffing, plane types and runways.

The source would not comment on whether the prices of tickets for internal flights would be the same as the national carrier. Prices for internal flights are subject to GACA regulations, he said.

Ishfaq Ahmad Jalal, Qatar Airways regional director in Saudi Arabia, said there are 65 international flights from various Saudi cities. Al-Sharqiah ranks first with 21 flights, Dammam with four daily flights, with the rest taking off from Riyadh, Jeddah, Madinah and Al-Qasim.

He said many Arab and international airlines want to operate in the Saudi market because of its large population, number of airports and few internal flights.

Jalal said there would be fierce competition once Qatar Airways starts operating domestic flights, which could reflect in prices and services offered to passengers.

Last December, GACA awarded Gulf Air and Qatar Airways licenses to operate domestic flights, after they made the best offers.

During the first stage of the tender process, GACA received applications from 14 companies for licenses. Offers were classified according to specific criteria including operational competency, level of financial solvency and years of expertise in the aviation industry.

Gulf Air’s application included high-level operational plans that included a focus on service quality.