Plane in the sky

Review of Bilateral Aeropolitical Strategies for the Kingdom of Saudi Arabia

The challenge

The Saudi regulator, GACA (Saudi General Authority on Civil Aviation), appointed Nyras to assist in fine tuning their aeropolitical strategy for future ASA (Air Service Agreement) negotiations. GACA recognised that aviation is a rapidly developing industry and wanted to identify policies and strategies that would be in the best interests of its people.

The Kingdom of Saudi Arabia is surrounded by states with some of the world’s most competitive airlines. Its own carriers are currently undergoing changes to help them adapt to the challenges of the evolving market. In the meantime, Saudi Arabia as a whole has wider ambitions to grow its economy, specifically in areas of religious tourism and development in the regions.

The solution

To carry out this assignment, Nyras set up a series of stakeholder interviews with the Saudi carriers and their significant competitors, to garner opinion advancing wider Saudi economic interests through enhanced aviation activity. After analysing the results, Nyras put forward a series of strategic recommendations to GACA, suggesting ways that aviation can be best used to advance the economy of the kingdom.

Special care was given to seek policies that were fair to all. In doing so, Nyras was mindful of the fact that too much protectionism would discourage necessary reforms and modernisation within Saudi aviation but, at the same time, it would be unsustainable to subject Saudi carriers to the onslaught of full open skies in the near future. 

The results

The Nyras recommendations have helped to form some of the guiding principles for future ASA negotiations. Furthermore, Nyras has since been asked to provide training to help the negotiating team fine tune their strategies in preparation for future bilateral discussions.

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