In a major development for Saudi Arabia’s aviation sector, the General Authority of Civil Aviation (GACA) has announced a new economic policy framework, marking a major step forward since the launch of Vision 2030.
The new economic regulations aim to promote competition, create open markets for growth and innovation, and enhance transparency in commercial relationships and pricing, the authority said in a statement on Monday.
According to GACA President, Abdulaziz Al-Duailej, these changes align with global best practices and are set to have a profound impact on the aviation sector.
“GACA’s transformation of Saudi Arabia’s aviation economic regulations will drive further investment, growth, and performance across the aviation sector. 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,” Al-Duailej said.
The reforms encompass a range of measures, including expanding the qualifying rules for airport operators to support the privatisation of Saudi Arabia’s airports and streamlining processes for new entrants.
Airports will have increased flexibility in proposing charges and diversifying revenues. Airport performance will also see significant improvements, with new quality targets linked to an incentive scheme.
In addition, ground handling services and air cargo will be opened up to competition, with a ‘general freedom of access’ principle that promotes competition across the kingdom’s airports.
Licence processes for ground handling and air cargo service providers will be streamlined, benefiting both operators and consumers.
Foreign carriers will also benefit from streamlined processes, including the removal of the economic license requirement for charter flights, reducing the cost of doing business.
General Aviation operators will enjoy greater flexibility, with the removal of ’empty-leg’ restrictions for international flights, enhancing network connectivity.
A new certificate will be introduced to allocate international traffic rights on constrained routes for national carriers, ensuring equal opportunities.
These changes are the result of extensive consultations with aviation sector stakeholders and will be phased in over 18 months.
GACA will also communicate an implementation plan to sector operators to ensure a smooth transition.
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