Saudi Arabia’s General Authority of Civil Aviation (GACA) has unveiled an economic policy transformation that it says will unleash the Kingdom’s aviation sector by attracting investment, boosting competitiveness, increasing transparency and enabling the realisation of Saudi Aviation Strategy objectives.
Key reforms of the policy transformation include the introduction of competition standards at airports, anti-competitive pricing measures, streamlining the economic license for air transport operations and the relaxation of requirements of airport operators and investors.
GACA President, HE Abdulaziz Al-Duailej said the changes align with global best practice.
“GACA’s transfomration of Saudi Arabia’s aviation economic regulations will drive further investment, growth , and performance across the aviation sector,” he said.
“The regulations will enable the realisation of the Saudi Aviation Strategy, which is mobilising $100 billion in investment from public and private sector sources by 2030.
“The regulations create an open, dynamic and competitive market, setting a level playing field for global operators and investors in the Kingdom. These changes will create more competition, choice and value for passengers and consumers.”
For airport operators, the reforms will see qualifying rules expand to support the privatisation of the Kingdom’s airports alongside streamlining processes for new entrants to conduct business.
Airports will be enabled to propose charges in line with GACA’s policy frameworks, and will have more flexibility to diversify revenues by growing non-aeronautical revenues. Airport performance will also see a significant overhaul, with airport quality targets linked to a new incentive scheme.
In addition, ground handling services and air cargo will be opened to competition with a ‘general freedom of access’ principle being supported by competition levels across the Kingdom’s airports. License process will also be streamlined, while foreign carriers will similarly benefit from streamlined processes including the removal of economic license requirements for charter flights, reducing the cost of doing business. General aviation operators will benefit from the removal of ’empty-leg’ restrictions, giving more flexibility when operating international flights to enhance network connectivity. A new certificate will also be introduced to allocate international traffic rights on constrained routes for national carriers to ensure equal opportunities.
