Saudi is to cut airport charges by as much as 35 percent later this year as it seeks to lure passengers and compete with other airlines in the region, Bloomberg reported.
To be applied to Riyadh, Jeddah, and Dammam airports, the price reduction is the next step in the continuing privatization of the sector, the General Authority of Civil Aviation (GACA) announced at the UK’s Farnborough air show.Â
Airports will be allowed flexibility to reduce charges below the announced caps to maximize growth, GACA said at the aerospace and defense industries exhibition.
On July 15, Saudi announced the opening of its airspace to all airlines upon GACA requirements.Â
In a statement, the authority explained that the decision comes within the framework of the country’s keenness to fulfill its obligations under the Chicago Convention of 1944 that stipulates non-discrimination between civil airplanes used in international air navigation.
Moreover, GACA said that the decision comes in line with the efforts aimed at consolidating Saudi’s position as a global hub connecting three continents and enhancing international air connectivity.
