Dubai: Seven of the 14 companies that bid for a new airline licence to operate domestic and international flights in Saudi Arabia have been prequalified by Saudi Arabia’s General Authority of Civil Aviation (GACA), according to a report by Zawya Dow Jones, quoting Saudi Press Agency (SPA).
Without divulging the name of the firms, the GACA, according to the state-run agency, said that the companies include Saudi-Chinese consortia and Saudi-Gulf consortia, as per the report, adding that authority will meet with the shortlisted firms in August to advise them on the bids.
The kingdom said earlier this year it would approve new airline licences in September.
The move comes in line with Saudi Arabia liberalising its aviation sector, which has encouraged Gulf carriers such as Qatar Airways and Etihad Airways to evaluate opportunities in the kingdom.
“Gulf and Saudi markets are very important to us. We are noting what’s been done and are evaluating opportunities, but we are not in any discussions to invest or for an equity stake in Saudi Arabia,” Etihad Airways’s chief executive and president, James Hogan, told Gulf News last week in a phone interview.
Qatar Airways, meanwhile, said recently that it is keen to launch a new airline based in the kingdom while also eager to invest in the Saudi domestic aviation sector. Chief Executive Akbar Al Baker of the Doha-based carrier reportedly said that the Saudi airline sector is “underserved” and represented a key growth area with need for greater domestic air services. He also said that the airline was keen to invest in the Saudi domestic aviation market, and that this was dependent on a rethink by the government of certain factors.
Saudi Arabia currently has airlines operating in the kingdom. These include the state-owned Saudi Arabian Airlines (Saudia) and low-cost carrier National Air Services (NAS). The country’s third carrier, Sama Airlines, ceased operation last year as talks with the government failed to yield a commitment to support the company.
“The Saudi policy actually opens up Saudia and NAS to competition that they may well not be geared up to coping with. You have the relentless and furious expansion of flydubai and Emirates, with new airplanes and great products – you have to wonder whether the Saudi government ends up watering down its policy to protect its two domestic players,” said aviation analyst Saj Ahmad of StrategicAero Research.
