Saudi Arabian Airlines (Saudia) is expected to increase its domestic fares by 10 percent starting early 2016, local daily Al-Watan reported on Tuesday quoting informed sources. The sources said the new fares were under discussion for a long time in view of the rising costs of operation and the entry of some new air companies into the local market. In addition to Saudi Airlines and Flynas, which are already operating, Al-Khalijiah Saudi Arabia, Al-Maha Airways and Nasmah are expected to enter the market very soon. The sources said Saudia was trying to increase its fares gradually to be able to cover part of the costs of its domestic flights. They said, as a national carrier, Saudia is obliged to serve destinations which have no economic value for it. Saudia Director General Saleh Bin Nasser Al-Jasser was quoted last week as saying that the domestic fares were being reviewed and might be amended as they have stood for long years without any change. He said the cost of operation is increasing while the fares have been static for long years. "We are incurring huge costs resulting from aircraft prices, airport fees, maintenance, human cadres and others," he added. Meanwhile, two rented Czech Airbus 319A aircraft will enter the domestic market from Saturday to increase the seating capacity of the internal flights. According to informed sources, the two aircraft, rented under the ACMI system, will add 10,800 new seats to the domestic flights. The sources said one of the aircraft will fly from Jeddah to Riyadh, Dammam, Madinah, Qassim, Al-Jouf, Arar, Tabuk and Yanbu while the second will fly from Riyadh to Jeddah and other destinations.
