Emirates says operating in Saudi not feasible

Emirates, one of the fastest-growing carriers, is no longer encouraged to operate inside Saudi Arabia because of tough terms imposed by the Gulf Kingdom, the largest Arab economy and most lucrative regional market. In a report published on Wednesday, the Saudi Arabic language daily Aleqtisadiah quoted an unnamed Emirates source as saying the terms imposed by the Saudi Civil Aviation Authority for foreign airlines seeking to operate domestic flights in the Kingdom are discouraging. “These conditions are not appropriate and do not encourage Emirates to compete in that market,” the paper quoted the source as saying. “Emirates may be no longer interested in entering the Saudi market because those terms are not encouraging or suitable.” The source did not elaborate on those conditions but the paper quoted an aviation source as saying the Kingdom’s policy of setting a ceiling on air fares for domestic flights means that it “remains a difficult market for foreign carriers.” Aleqtisadiah noted that a senior Emirates official said in recent comments that Saudi Arabia’s plan to open up its skies to foreign airlines constitutes a “positive development” which will benefit the aviation industry and passengers. “Emirates is currently looking with interest at various opportunities which it considers feasible in any part of the world….but it has not taken a decision yet because such issues need more time and studies,” said Ahmed Khouri, Emirates’ senior vice president for the GCC, Middle East and Iran. Emirates, owned by the Dubai government, currently operates 38 flights a week to Saudi Arabia, including 12 to the capital Riyadh, 12 to the western Red Sea port of Jeddah, Saudi Arabia’s second largest city, and seven flights each to Dammam in the eastern region and Medina in western Saudi Arabia.