Riyadh – Mubasher: The Saudi General Authority of Civil Aviation (GACA) affirmed that prices of domestic flights will increase 5% in 2018 after putting the value added tax (VAT) into effect, while the prices will be liberalised by 2019.
GACA ruled out that local aviation firms will raise ticket prices due to the increase of jet fuel prices, according to Al-madina newspaper.
The Saudi body plans to create a competitive business climate in the domestic aviation market in a bid to provide the state-of-the-art services for travelers, said the spokesman Abdullah Alkharef.
Saudi Arabia's Council of Ministers approved two years ago allocating SAR 370 million to subsidise low-traffic lines which are non-profit destinations of national carriers, Alkharef concluded.
