July 21--JEDDAH -- Saudi Aramco said Saturday that it had not signed any agreement with Qatar Airways for selling jet fuel at discounted prices following reports that the airline had reached a preliminary deal with the Saudi oil giant.
An official of Qatar Airways, one of the two airlines that received licenses to operate domestic flights in the Kingdom, had told Al-Eqtisadiah that the airline had reached an agreement with Aramco to get fuel at prices offered to Saudi Arabian Airlines.
"Saudi Aramco has not concluded any agreement with Qatar Airways on jet fuel prices and what is stated by the airline's official is totally false," the oil company said.
The Qatari official, who preferred to remain anonymous, said his company would soon complete the necessary paperwork to get the final licenses to operate locally.
The official said the agreement on fuel prices would support the company's operations in the Saudi market. It would help liberalize Saudi airspace and boost the aviation industry.
"We expect to start operating our internal flights at the beginning of next year," the source said. Negotiations are still under way between Qatar Airways and the General Authority of Civil Aviation (GACA) to determine operation points on the Saudi map, international flights, the number of planes, staffing, plane types and runways.
The source would not comment on whether the prices of tickets for internal flights would be the same as the national carrier. Prices for internal flights are subject to GACA regulations, he said.
Ishfaq Ahmad Jalal, Qatar Airways regional director in Saudi Arabia, said there are 65 international flights from various Saudi cities. Al-Sharqiah ranks first with 21 flights, Dammam with four daily flights, with the rest taking off from Riyadh, Jeddah, Madinah and Qassim.
He said many Arab and international airlines want to operate in the Saudi market because of its large population, number of airports and few domestic flights. Jalal said there would be fierce competition once Qatar Airways starts operating domestic flights, which could reflect in prices and services offered to passengers.
Last December, GACA awarded Gulf Air and Qatar Airways licenses to operate domestic flights, after they made the best offers. During the first stage of the tender process, GACA received applications from 14 companies for licenses.
Copyright 2013 - Arab News, Jeddah, Saudi Arabia
