Saudi- GACA offers cheap fuel to woo airlines 

(MENAFN - Arab News) Prince Fahd bin Abdullah, president of the General Authority for Civil Aviation, announced GACA's plan to provide jet fuel at discounted rates as part of its efforts to woo new airlines to operate domestic flights.

The move is significant in the backdrop of a 19 percent increase in passengers using domestic flights. GACA has already licensed Qatar Airways and Gulf Air to operate domestic flights along with Saudi Arabian Airlines.

"All domestic operators will be given jet fuel at equal rates and the price will be much less than what is available in the neighboring regions," the GACA chief said hoping it would encourage new airlines to operate flights between Saudi cities. "The Kingdom's international airports now attracts more foreign airlines with an increase of six percent," Prince Fahd said.

He emphasized GACA's plan to improve its services to passengers and airlines by developing airports with private sector support. "We want to increase GACA's contribution to the national economy from SR 30 billion to a much higher amount considering the growing civil aviation industry."

GACA has plans to establish a holding company within five years to privatize the Kingdom's airports. "We'll establish separate companies to run each international airport with world-class standard," he added.

Prince Fahd also disclosed plans to license a second company to provide ground services at Saudi airports. "We have requested international companies to express their desire to provide this service." New operators will also be licensed for catering and cargo services as part of opening up the aviation sector.