GACA proposes draft economic regulations to improve aviation sector’s efficiency

Saudi Arabia’s aviation sector’s efficiency and competitiveness are set to receive a boost thanks to the new economic regulations that are likely to be introduced.

The General Authority of Civil Aviation has put forward the draft economic regulations for airports on a survey platform between June 22 and July 20, according to a statement.

The regulations aim to support the sector’s rapid growth, enhance passenger experience and ensure transparency and fairness.

In addition, they stipulate that the Saudi government shall retain ownership of fixed assets such as lands on which the Kingdom’s airports are located.

The authority also indicated that the management of these assets could be granted to private entities through lease contracts, franchise rights or public partnerships.

The regulations added that the GACA would control the fees for nonnavigational and navigational services.

The fees for nonnavigational services include space rentals, airport facilities and airport technologies.

They also include baggage handling, public services — such as electricity, water, internet and air conditioning — and entry fees.

On the other hand, navigational services fees include the cost of using buildings and passenger facilities, landing and take-off fares and expenses for the security of passengers and aircraft.
These also entail bridge boarding charges and bus transport fares at the airport.

Furthermore, the regulations indicated that the airport operator must include detailed information on each consultation stage in the project investment file.

The operator must also share details about the method to predict cost escalation and the project’s expected impact on airport fees over the next five years.

In addition, the operator must submit the expected outcome of airport operations, service levels, user operations and future developments.

Lastly, the report must also factor in the principal risks involved in the comprehensive investment program.

The GACA’s vision is to create a safe and secure aviation environment by following the most rigorous international safety standards and building a modern airport system that offers consistently exceptional services.