KSA to phase in new domestic carriers

Saudi Arabia is to start phasing in new airlines into its domestic market and is considering building two new airports to cater to increased traffic, a senior official from the kingdom’s aviation authority said. It was reported earlier this year 14 carriers were eyeing licences in the kingdom, but Faisal Al Sugair, vice-president at the General Authority of Civil Aviation (GACA) said the carrier will phased in. “Not all 14 will get approval… We have a constraint that you can’t give too many licences at the same time. They will just ruin the market and kill each other,” Al Sugair told Zawya Dow Jones in a recent interview. The Gulf’s biggest aviation market, there are currently only two domestic markets in the kingdom, flag carrier Saudi Arabian Airlines and low-cost National Air Services (nasair). The GACA raised nearly US$4bn earlier this year to finance the redevelopment of Jeddah airport and it is also planning expansion at Riyadh airport in order to nearly double its capacity to 25m passengers by 2016. “There is demand and a lot of airlines want to come to Riyadh. We're constrained now because of our capacity issues,” Al Sugair was quoted as saying. The authority is also considering building two new airports, at Fursan island in the south and Qunfudah in the west, the report added. By Arabian Business