Authority proposes Hajj terminal levy

26 January 2007

Passengers using King Abdulaziz International Airport in Jeddah could be hit by a new tax, after a decision by the General Authority for Civil Aviation (GACA) to raise a levy to pay for the upgrade work on the Hajj terminal.

GACA is to charge an additional SR 10 ($2.70) per passenger to airlines operating from the terminal, to recoup its costs from the $250 million project. It will be up to the airlines whether to pass this cost onto their customers. A GACA official says: 'We do not think SR 10 per person is a big deal.'

Saudi Binladin Group, which won the 20-year contract to upgrade the terminal in early January, has distanced itself from any cost increases.

'There were concerns we would charge our costs to pilgrims,' says a Saudi Binladin official. 'We will not be charging pilgrims. Costs will be charged to the airlines [by GACA].'

International passengers at all the kingdom's airports pay SR 50 ($13.30) per person, and a flat increase to this fee for all customers at Jeddah seems most likely. 'There is an argument that passengers need to be treated equally,' says Moazzam Mekan at the International Finance Corporation, which has been advising GACA on the project.

Saudi Arabian Airlines declined to comment on how it planned to deal with the new levy.

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