Saudi Arabia cuts airport fees slashed in search of air traffic

Saudi Arabia has announced a significant reduction in airport charges, which could fall by up to 35%, in an effort to compete and position itself in a sector that could be very important for the Saudi economy, as the region has some of the largest passenger hubs in the world.
 
The reduction will apply to Riyadh, Jeddah and Dammam airports, which will be allowed some flexibility to reduce charges below the announced limits to maximise growth, a provision that is expected to be implemented by the end of this year. 
 
The move is a further step in the sector's ongoing privatisation, according to the country's General Authority of Civil Aviation, which announced it at the Farnborough Air Show on Wednesday. 
 
The proposal comes after Saudi Arabia said it would offer airlines certain incentives to fly unprofitable routes and, crucially, after the announcement of the opening of its airspace to all airlines flying in and out of Israel. 
 
With this series of measures, the Kingdom seeks to better compete with major airline hubs, which are located in neighbouring countries such as the United Arab Emirates and Qatar.  A goal that Saudi Arabia has been striving towards for several years, since it began offering tourist visas in 2019. 
 
That same year it also launched a major campaign to subsidise airlines in a new attempt to get them to fly to the country, a recognition that shows us how limited the options were for travellers to reach the Kingdom.
 
This move is the latest step in Crown Prince Mohammed bin Salman's strategy to reduce dependence on crude oil exports as much as possible and turn Riyadh into a more easily accessible global business hub.