Gulf Air is going head to head with Emirates in a bid to win the potentially lucrative licence to operate domestic flights within Saudi Arabia.
Arabian Aerospace reported in December that Saudi's aviation authority, GACA was to award licenses to non-national airlines to operate flights in this country. The GACA decision to open up the market to competition from non-national carriers, comes after years of back-and-forth maneuvers between Saudia, the Ministry of Finance, the Supreme Economic Council and the Commission of Experts linked to the Council of Ministers.
The Saudi Gazette newspaper reported today that it had been told by a source within GACA that the UAE and Bahraini airlines had been the first to put their names forward for the licence but said more airlines had also expressed an interest
“I’d say a major reason for GACA’s response is motivated by the government’s obligations under WTO (World Trade Organization) membership requirements and the recent restructuring of civil aviation, to become independent from the Ministry of Defense. These factors have greatly eased the process,” the source told the newspaper.
Asked if Gulf Cooperation Council (GCC) air transport operators would have an advantage over other competitors, the source said: “They already have. They know the culture, they have huge databases about travel loads to-and-from the Kingdom and have the cultural adaptability. I believe they are in a much more advantageous position than newcomers from abroad.”
The source said traffic to some regional hubs will be affected by Saudi Arabia opening up its local airspace. “I believe it would. Look at the great distance the Saudi airspace is from unfriendly skies. I believe GCC air companies know this fact and will clamor to take advantage of it.”
According to reports,it was last Saturday when GACA invited companies to kickstart their bids for licenses with an application closure date set of March 18.
GACA announced that it would issue a request for proposal (RFP) in April 2012 and that the RFP would furnish the bidders with more details and specific conditions of what would be needed to get a license.
The aviation authority would also invite the qualified bidders to an open meeting with GACA to outline further licensing requirements and to make presentations. The Saudi Gazette reported that GACE will allow the winning bidder multiple options, including operating from local airports of their choice and free selection of domestic routes. They will also be allowed to operate international flights.
Asked if Gulf Cooperation Council (GCC) air transport operators would have an advantage over other competitors, the source said: “They already have. They know the culture, they have huge databases about travel loads to-and-from the Kingdom and have the cultural adaptability. I believe they are in a much more advantageous position than newcomers from abroad.”
The source said traffic to some regional hubs will be affected by Saudi Arabia opening up its local airspace. “I believe it would. Look at the great distance the Saudi airspace is from unfriendly skies. I believe GCC air companies know this fact and will clamor to take advantage of it.”
According to reports,it was last Saturday when GACA invited companies to kickstart their bids for licenses with an application closure date set of March 18.
GACA announced that it would issue a request for proposal (RFP) in April 2012 and that the RFP would furnish the bidders with more details and specific conditions of what would be needed to get a license.
The aviation authority would also invite the qualified bidders to an open meeting with GACA to outline further licensing requirements and to make presentations. The Saudi Gazette reported that GACE will allow the winning bidder multiple options, including operating from local airports of their choice and free selection of domestic routes. They will also be allowed to operate international flights.
Article Source : Arabian Aerospace
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