Arab Today, arab today airports and travel will survive saudi budget cuts
Last Updated : GMT 14:21:10
Arab Today, arab today
Arab Today, arab today

Airports and travel will survive Saudi budget cuts

Arab Today, arab today

Arab Today, arab today Airports and travel will survive Saudi budget cuts

Pilgrims walk outside the King Abdul Aziz airport upon their arrival in Jeddah
Riyadh - Arab Today

Saudi Arabia’s 2016 budget cuts could have a dampening effect on airport construction and airline travel in the country, analysts say.

But even with a sudden loss of altitude, the landing should be soft.

“For airport construction, you could consider building a grand palace instead of a majestic palace,” said Will Horton, a senior analyst at the Centre for Aviation (Capa). “But this is a long-term decision, not something easily adjusted for one year’s budget.”

Mr Horton said that even amid financial cuts, few airports in the region are designed with strict budgets in mind, as they are viewed as long-haul investments.

His stance was seconded by Mark Martin, the chief executive of Dubai-based Martin Consulting, who said that airports such as Jeddah, Taif and Medina would continue to attract passengers visiting for Haj and Umrah without signals of scaling back.

“Jeddah airport with the Mega Haj bin Laden Terminal in service at the moment is expected to soon reach maximum capacity, and as a result we don’t believe there will be any roll back on the development of the new Jeddah Airport,” said Mr Martin.

He said that in the end, the outlook depends on the oil price.

“This period will probably be the most significant for Saudi Arabia because the country’s biggest economic wealth driver has been devalued to its lowest level ever,” he said.

The decline in oil to an 11-year low last week of $35.98 – down from a high of about $115 per barrel in June last year – has hit the oil exporter hard.

The country has liquidated foreign assets held at the central bank and its sovereign wealth funds to plug the fiscal deficit.

Regardless, Arabian Gulf carriers such as Emirates have been bullish on Saudi Arabia lately. The Dubai carrier operates 70 flights a week to the kingdom – between Dubai and Riyadh, Jeddah, Dammam and Medina.

On December 15, it added a third daily flight to Riyadh in response to rising demand from business and leisure travellers.

Mr Horton said that any curb in Saudi Arabia’s government travel is likely to affect Saudi Airlines (Saudia).

However, he ruled out the possibility of government officials travelling in economy class, let alone low-cost carriers, as has happened in China amid austerity measures.

Meanwhile, Saudi Arabia’s economic situation gives more urgency for reform. Promoting aviation as an economic growth engine could be effective, as Saudi Arabia wants to increase non-oil revenues.

“The focus now shifts [for Saudi Arabia] to it building economic sustainability and, importantly in the coming years, balance its fiscal deficit by realigning its economic drivers,” said Mr Martin.
Source: The National

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today airports and travel will survive saudi budget cuts Arab Today, arab today airports and travel will survive saudi budget cuts

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today airports and travel will survive saudi budget cuts Arab Today, arab today airports and travel will survive saudi budget cuts

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Second US judge orders freeze

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Writing's on the wall for Trump, Zuckerberg

GMT 09:05 2017 Thursday ,19 October

Writing's on the wall for Trump, Zuckerberg
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Hussein Fahmy happy for honoring in festival

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday