Competition in domestic flight market to reduce fares

The introduction of new airliners within the Kingdom will reduce flight prices by more than 25 percent, encouraging Saudis and expats to travel more often, according to aviation experts.
Local customers are eagerly awaiting the launch of the new companies, which have recently been approved by the General Authority of Civil Aviation (GACA), to begin operating in the Kingdom.
Qatar Airways plans to launch domestic Saudi operations under Al-Maha Airways, which will have a similar logo to the national carrier and will operate flights in major domestic routes.
Nasser Al-Tayyar, chairman of the Al-Tayyar Group for Travel and Tourism, said that the new company will enter the Saudi market, but would gradually place more emphasis on international flights, creating high competition with Saudi Airlines and Flynas.
“Local customers will definitely benefit from this competition,” he told Arab News. “However, the Qatari company should focus on domestic flights after getting a license from GACA.”
Qatar Airways had been awarded licenses in 2013 to operate domestic and international flights in Saudi Arabia. It is the first foreign airlines to have a license in the Kingdom after a total of 14 airlines applied to GACA.
“The competition between Saudi Airlines, Flynas and Qatar Airways will boost domestic tourism in the Kingdom and revive the aviation sector,” he said.
“The Saudi government must, nevertheless, support the national carrier, Saudi Airlines, to be able continue in the market.”
“Expected competition between Al-Maha Airways and Saudi Airlines will encourage the companies to launch special offers to win over clients in the local market,” Essam Raji, the manager of travel and tourism agency, told Arab News.
Saudi Arabia, which is the biggest Arab economy, still has one of the smallest airline networks in the region relative to its size.
More than 54 million passengers traveled through Saudi Arabia’s 27 airports in 2011, according to data from GACA, rising 13.6 percent from 2010.
Currently, only Flynas, a privately owned company, and Saudi Airlines operate both international and domestic flights.
In 2010, former airline company Sama was forced to suspend its operations due to a financial crisis.