#SaudiArabia Airport Charges Cut to Lure Airline Traffic - Bloomberg

Saudi Arabia Airport Charges Cut to Lure Airline Traffic - Bloomberg

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

The reduction, which will apply to Riyadh, Jeddah and Dammam airports and be implemented later this year, are the next step in an ongoing privatization of the sector, the country’s General Authority of Civil Aviation announced at the Farnborough air show on Wednesday. Airports will be allowed flexibility to reduce charges below the announced caps to maximize growth, 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 only 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 center.