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FINANCIAL NEWS
Saudi aviation body to review fuel price, allow fare increases
18 Dec 2012
(MENAFN) Saudi Information Minister Abulaziz Khoja disclosed that Saudi Arabia plans to give its civil aviation body powers to allow fare increases, Reuters reported.
Khoja said a government committee, including the General Authority for Civil Aviation (GACA), would review fuel prices at airports, in comparison to prices in force in regional airports and raise them to the appropriate level.
The committee said that it will also review the economy-class ticket prices on domestic flights, with carriers able to increase prices gradually as the date of travel approaches, in accordance with guidelines set by GACA.
The Saudi airline industry is dominated by state-owned Saudi Arabian Airlines (Saudia), but the largest Arab economy still has one of the Middle East’s smallest networks relative to its size and Saudia and budget carrier National Air Services (nasair) struggle to meet demand.
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