Saudi's Shoura Council demands national airline repay $3.5bn debt

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Members of Saudi Arabia’s influential Shoura Council have demanded the national airline Saudi Arabian Airlines repay SAR13bn ($3.5bn) it owes the civil aviation authority.

The General Authority of Civil Aviation (GACA) also is owed SAR3bn by private businesses and another SAR1bn from the government, it was revealed, according to Arab News.

Shoura Council member Khalid Al Aqeil said the authority needed to get on top of the growing volume of unpaid annual returns.

He did not detail why the money was owed but companies such as Saudia pay GACA annual levies.

Saudia has long benefited from government subsidies, especially on oil, and support but it is now being gradually privatised, with some subsidiaries already sold off.

In a wide-ranging report, the Council’s transport, communication and information technology committee also urged contracts for new airport buildings to be more quickly awarded to help keep up with growing passenger demand.

Saudi Arabia is building or extending 25 airports across the country.

The Shoura Council also this week called on GACA to speed up the issuing of licences to two foreign airlines that will operate domestic services to help the kingdom cope with its burgeoning demand.

GACA approved Al Maha Airways – a subsidiary of Qatar Airways – and the privately owned Saudi Gulf Airlines, in November last year.

They are due to begin passenger services this year but risk being delayed without GACA licences.

Related:

People

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Playing by the numbers: Saudi Arabian Airlines

Playing by the numbers: Saudi Arabian Airlines

Why is Saudia only mentioned as an afterthought when one talks...

Ports of change

Ports of change

Investment in ports in the GCC region is at a record high, as...

Crowded skies in the Middle East

Crowded skies in the Middle East

Aviation experts give their suggestions on how to solve the Middle...

Most Popular
Most Discussed