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Global - July 20, 2022

Umrah: Saudi Arabia to slash charges in three major airports by 35%



Saudi Arabia said it will cut airport charges by as much as 35 percent in a bid to compete in a region that already hosts some of the world’s biggest passenger hubs, according to a Bloomberg report.


The reduction, which will apply to King Khalid International Airport of Riyadh, Jeddah’s King Abdulaziz International Airport and King Fahd International Airport of Dammam. The cut in airport charges will come into force later this year.

The airport charge slashes are the next step in an ongoing privatization of the airport sector, Saudi General Authority of Civil Aviation (GACA) announced at the Farnborough Air Show on Wednesday. Airports will be allowed flexibility to reduce charges below the announced caps to maximize growth in passenger traffic, GACA said.


The move comes after Saudi Arabia said it would offer airlines incentives to fly unprofitable routes and days after the country opened up its airspace to all airlines flying in and out of Israel. The Kingdom is looking to compete better with major hubs in neighboring United Arab Emirates and Qatar.


Saudi Arabia began offering tourist visas in late 2019, and subsidizing carriers to fly to the country is a recognition of how limited options are for travelers to get there. The move is the latest step in Crown Prince Mohammed Bin Salman’s strategy to reduce reliance on the world’s largest crude oil exports and turn Riyadh into a global business hub.




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