Saudi Arabia opens charter airline license bidding to expand aviation sector

Arab News

14-04-2025

JEDDAH: Saudi Arabia has launched a public tender for a national charter air carrier license, inviting private operators to offer non-scheduled services as part of its push to expand the aviation sector.
The General Authority of Civil Aviation said interested investors must request the tender documents via email. The bidding window opened April 13 and runs through May 21, with offers to be submitted both physically in sealed envelopes and electronically in encrypted form. Bids will be opened on May 22 in Riyadh.
The move supports the Kingdom's National Aviation Strategy, which targets facilitating 330 million passengers annually and connecting to over 250 international destinations by 2030.
In an official release, GACA said that the initiative is designed 'to enhance the quality of services provided to travelers, raise the level of competitiveness.'
The development follows a February policy shift that lifted cabotage restrictions, allowing foreign charter operators to apply for domestic routes under Saudi regulations beginning May 1.
Cabotage restrictions are regulations that prohibit foreign-flagged ships or airlines from transporting goods or passengers within a country's borders, typically allowing only domestic carriers to operate such routes to protect national industries.
The reform is expected to stimulate competition and attract foreign investment in general aviation.
The development marks a key milestone in Saudi Arabia's ongoing efforts to diversify its aviation sector and enhance private sector participation in the growing charter services market.
According to official data, the Kingdom's business jet sector recorded a 24 percent increase in flight volumes in 2024, with domestic flights rising 26 percent to 9,206 and international flights up 15 percent to 14,406 — reflecting the sector's expanding contribution to the national economy.
Announcing the policy changes in February, Imtiyaz Manzary, general manager for general aviation at GACA, highlighted the significance of the move, noting that the authority is opening new opportunities for the global aviation industry by lifting restrictions on domestic charter flight operations in the Kingdom.
'This regulatory decision supports GACA's roadmap to establish Saudi Arabia as a general aviation hub, alongside an unprecedented infrastructure program to develop new private airports and terminals across the Kingdom,' he said, as reported at the time by the Saudi Press Agency.
The removal of these restrictions forms a key part of the authority's strategy to boost competition, attract foreign investment, and offer greater operational flexibility within the general aviation sector.
As part of its broader General Aviation Roadmap — unveiled at the Future Aviation Forum in May — GACA aims to transform the sector into a $2 billion industry by 2030, generating 35,000 jobs. The plan includes the development of six dedicated business aviation airports, nine specialized terminals, and expanded maintenance, repair, and overhaul capabilities for business jets.
GACA said inquiries on the license tender will be accepted via email until May 8. It also warned that discrepancies between hard and electronic copies will result in disqualification and that late submissions will not be accepted.