Established in 1944, the Presidency of Civil Aviation (PCA) is now on the runway to becoming a commercial organization with a mission to stimulate investment in the aviation sector.

in such a large country, efficient air transportation is vital for the smooth running of the economy. Saudi Arabia is justly proud of its civil aviation sector, first established in 1944. With late King Fahd as Custodian of the Two Holy Mosques, the kingdom sees huge influxes of Hajj and Umrah pilgrims every year. The country has 27 airports, three of which are international, and Saudi Arabian Airlines (Saudia), the national carrier, has the largest fleet in the Middle East.

However, in the opinion of Abdullah M. N. Rehaimi, at the head of the Presidency of Civil Aviation (PCA), the sector has yet to reach its full potential.

The most important decision to date has been to liberalize and privatize the industry “We believe that right now there is a significant demand for service that is not being met,” says Mr. Rehaimi. “We have therefore made a decision to open up the market to allow other carriers to operate. Initially, this will only apply to the domestic market, but over time the reform will extend to the international market as well.” Concurrently with this strategy, the PCA itself will be reorganized. In March this year, the government approved the decision to give the agency financial and administrative independence and have it operate on commercial lines. “The PCA will become a commercial organization with a mission to stimulate investment in the aviation sector,” says its president. Private sector participation is already being sought for international and domestic airport operations, with the exception of sec-urity.

ABDULLAH M. N. REHAIMI President of Civil Aviation

Saudi Arabia’s largest airport and the main destination for pilgrims, King Abdul Aziz International Airport in Jeddah, is undergoing an expansion that will boost its passenger handling capacity to 21 million a year. The project includes construction of two new terminals and extension of the existing one, with passageways connecting the three. A two-story car park will accommodate 5,700 cars, and 25 passenger bridges will connect departure and arrival lounges directly with aircraft. Other infrastructures, such as an integrated radar system and new and improved air traffic control centers, are also being introduced.

The two other international airports still have potential to exploit. At King Khaled Airport in Dammam, an entire terminal is available for added capacity once the demand materializes, while at King Fahd Airport in Riyadh there is room to handle seven million more passengers a year. Meanwhile, several smaller airports are on the drawing board for renovation. “We are currently involved in a major project to renovate and enlarge the Madinah Airport, which has great potential because of the religious significance of the city, and we expect to build a new airport in Al-Ola, in the northwest of the kingdom,” explains Mr. Rehaimi.

The end to Saudia’s monopoly on domestic flights came in July this year, when the first private licensee, Al Khayala, started flying the Riyadh-Jeddah route. Although this line is strictly for the top end of the market, where demand is particularly high, operator NAS also plans to launch a budget airline at some time in the future. “Saudia is certainly a commercial airline today, but with the advent of competition they will have to significantly increase their performance and efficiency because we expect competition to make a real and permanent impact on the market,” states Mr. Rehaimi.