Saudi Arabia's General Authority of Civil Aviation (GACA) is inviting parties interested in establishing a Dammam-based low-cost-carrier to lodge expressions of interest via a pre-qualification process now underway.

The licence will allow the airline to operate point-to-point domestic flights to any airport in the country from Damman's King Fahd International Airport. The airline will also be permitted to operate international flights from Damman in accordance with existing bilateral air services agreements.

The offer forms part the Saudi Aviation Strategy which seeks to turn the country into the region's aviation powerhouse by 2030. One specific part of that strategy is to launch a new local low-cost-carrier. Potential bidders must meet the following pre-qualification criteria;

  • The CEO and at least two thirds of the board of the entity must be Saudi Arabian citizens;
  • At least 51% of the voting interests must be held by citizens of Saudi Arabia;
  • The entity must be effectively owned and controlled by Saudi Arabian citizens;
  • The entity must provide externally audited financial statements for the last five consecutive years of operation;
  • The entity must submit a bank certificate attesting to its financial solvency;
  • The entity must provide details of its annual turnover for the last five years;
  • The entity must submit information on its aviation experience; and
  • The entity must provide a certificated summary of all safety breaches or fatal accidents.

The GACA is accepting pre-qualification applications up to June 8, 2023. Those entities that meet the pre-qualification criteria will then be issued with request for proposal documentation which will contain information on the post-qualification criteria, including the technical requirements and data necessary for operations, and information on obtaining an air operator's certificate. The GACA says only one low-cost operator will be selected.

Saudi Arabia is currently home to three scheduled carriers: state-run Saudia and its flyadeal budget subsidiary, and the privately-owned flynas.