Competitive Fuel Prices Proposed for Saudi Aramco

Sept. 3, 2013
Saudi Aramco talks fuel prices with General Authority of Civil Aviation

Sept. 03--RIYADH -- The General Authority of Civil Aviation (GACA) has taken major strides in talks on air fuel prices with Saudi Aramco at Saudi airports, said Prince Fahd bin Abdullah, head of GACA.

The GACA chief, in a wide ranging interview, said new and competitive fuel prices would encourage air carriers to operate more foreign and home flights and hence achieve more benefits to citizens, airlines and Saudi ports as well.

Plans are under way to upgrade efficiency of the civil aviation sector in the Kingdom through the partnership with the private sector in programs related to the establishment and operation of airports within strategic partnership programs with local and global private sectors, he said.

The rates of growth in Saudi civil aviation sector are considered the highest at the global level where the number of passengers is poised to increase to 100 million by 2022, he was quoted as saying.

The GACA chief said privatization programs are in full swing as represented in the establishment of Saudi Civil Aviation holding company together with plans to convert King Khaled, King Abdulaziz and King Fahd airports into companies operating on commercial basis.

The privatization programs will run through a number of forms with the private sector such as BTO or BOT models whereby the companies will undertake projects at their expenses without any financial burdens on the GACA in line with its terms and specifications set in collaboration with global consultants.

The privatization programs are primarily meant to improve services, meet future growth of air traffic and passengers, ease financial burdens on the state budget, reduce operation and maintenance costs, and maximize revenues, he said.

The GACA chief cited a number of BTO-based projects implemented in accordance with the strategic partnership with the private sector such as the Haj Terminal operation project at King Abdulaziz International Airport (KAIA), a water desalination project at KAIA, operation and maintenance of Prince Mohamed bin Abdulaziz Airport in Madinah, operation and rehabilitation of VIP lounges Kingdomwide, advertising and publicity project at the Kingdom's airports, and free market zone projects at three international airports as well as a series of handling and ground services.

On the work progress at the new KAIA project, the GACA chief said the first stage of the project will be completed by the end of 2014 to be readily operational by the beginning of 2015 to bring the capacity of the airport to 30 million passengers yearly.

The second and third stages, to be completed in 2020 and 2035 respectively, are planned to raise the capacity to 43 million and 80 million passengers respectively, he added.

About the first stage of the KAIA project, he said, it is composed of a series of facilities such as a terminal complex of 720,000 square meters, 46 gates, four terminals for first class and business category, a 136-meter-high control tower, mosque with capacity for 3,000 worshippers, 220 counters to serve passengers, a new baggage handling system, 8,200-car parking lot, 120-room hotel for transit passengers, fully integrated information center, and 36-km long road network leading to the airport.

On other developmental projects in the civil aviation sector, he added that a new contract was signed for the establishment of terminal 5 at King Khaled International Airport (KKIA), Riyadh.

The project is divided into two stages -- the first is planned to finish by the end of 2017 and aimed to raise the capacity of the airport to 35.5 million passengers per year whereas the second stage will raise the capacity to 47.5 million passengers.

On the authority's plans to develop local airports, he said the GACA has prepared plans to accommodate the growing number of passengers and upgrade services in a period covering up to 2040 in accordance with approved projects regardless of their sizes.

He reviewed a series of local airports which have been developed or under expansion such as Bisha Airport, Prince Abdulmuhasin bin Abdulaziz Airport in Yanbu, Prince Sultan Airport in Tabuk, Prince Abdulmajid Airport in Ola and Najran Airport while some others are under tendering and awarding stages, including in Jazan, Abha, Qassim, and Arar.

Referring to services provided to the people with special needs in Saudi airports, the GACA chief stated that designs and plans of new airports have given special care to those people and plans are under way to apply all international standards in this regard, notably at major international airports.

On incentives given to attract new air carriers, he said the GACA has provided a package of benefits to potential air carriers, including allowing them to select points of services at the local level and operation of international flights based on bilateral agreements with different countries.

Touching on the safety in the Kingdom's airports, he said the GACA is giving utmost care to the safety issue in terms of applying international standards or qualification of technical cadres. In this context, the GACA has developed safety policies and guidelines to minimize accidents through upgrading emergency plans at all airports to cope with the highest performance standards, he pointed out.

On cooperation with other countries, he said the GACA has inked joint deals to open up airspaces with those countries whereby the concerned parties could increase flights from and to the Kingdom, a matter that will enhance growth of air traffic in the Kingdom's airports.

Copyright 2013 - Arab News, Jeddah, Saudi Arabia