Airlines: new compensation rules come into effect

Saudi Arabia has implemented enhanced passenger protection regulations, ensuring an improved travel experience for the multitude of airline passengers travelling within and departing from the kingdom.

The newly established regulations were announced by the General Authority of Civil Aviation (GACA), and are crafted to “elevate the travel experience”, offering augmented support throughout the passenger journey, particularly during travel disruptions.

The regulations have bolstered compensation measures, offering more comprehensive coverage for issues such as flight delays, cancellations, overbooking, and unforeseen layovers. In certain instances, compensation could escalate to 150-200% of the original fare value. Additionally, for instances of lost or damaged luggage, passengers might receive compensation of around 6,568 Saudi Riyals (equivalent to approximately 1,750 USD).

In conjunction with these enhanced regulations, GACA has launched the “Putting Passengers First” consumer education campaign. This initiative is aimed at informing passengers about their bolstered rights and the significance of engaging with their airline to utilise these rights should they encounter travel disruptions. Should passengers not receive a satisfactory response within a week, they are entitled to request GACA’s intervention in addressing their grievances.

airline
Photo: Kevin Woblick / Unsplash

Eng Abdulaziz bin Abdullah Al Dahmash, GACA’s Vice President for Quality and Passenger Experience, underscored the significance of these enhancements, stating: “Effective immediately, passengers embarking on journeys from and within the Kingdom will benefit from augmented protections in the event of travel interruptions due to airline delays. We urge passengers to familiarise themselves with the enhanced rights outlined in GACA’s ‘Putting Passengers First’ campaign, and to promptly contact their airline in the face of any disruptions.”

Al Dahmash further commented, “These amendments are a testament to GACA’s commitment to prioritise passengers, delivering improved choice, value, and service quality. These regulations are instrumental in facilitating a superior travel experience, aligning with the Kingdom’s expansive Saudi Aviation Strategy growth objectives.”

The regulatory enhancements introduce 30 new provisions addressing each aspect of air travel, from ticketing, boarding, and in-flight services, to baggage management and provisions for passengers with special needs, including those with reduced mobility. The regulations also fortify and broaden compensation measures, encompassing scenarios such as flight delays, cancellations, overbooking, and unplanned layovers.

The regulatory changes were disclosed by GACA on August 23 and came into effect after a 90-day notification period.

Overhaul of economic regulations

In October, Saudi Arabia’s aviation industry also marked a significant achievement with the General Authority of Civil Aviation (GACA) unveiling a major overhaul of its economic regulations, the most comprehensive since Vision 2030 began.

This new economic regulatory framework aims to foster competition, open markets for development and innovation, enhance transparency in commercial dealings and pricing, and improve the allocation of resources, investment, and financial stability within the aviation industry. It is anticipated to create equitable opportunities for investors and operators, thus stimulating further competition.

GACA President, His Excellency Abdulaziz Al-Duailej, aligned the initiative with international best practices, stating: “The overhaul of Saudi Arabia’s aviation economic regulations is poised to propel investment, growth, and performance throughout the sector. These regulations are a cornerstone of the Saudi Aviation Strategy, seeking to activate public and private investments totalling $100 billion by 2030.

“These reforms will foster a competitive, vibrant market, ensuring a fair environment for international operators and investors in the Kingdom. This will lead to increased competition, more choices, and greater value for passengers and consumers,” added Al-Duailej.


GACA President, His Excellency Abdulaziz Al-Duailej (photo SPA)

The reforms include revised qualification criteria for airport operators to facilitate the privatisation of Saudi airports and to simplify procedures for new business entrants.

Airports will now have the autonomy to set charges within GACA’s policy framework and will gain increased flexibility to boost non-aeronautical revenue streams. A new incentive scheme will be introduced to enhance airport service quality.

Competition in ground handling services and air cargo will be invigorated, abiding by a ‘general freedom of access’ principle and improved competition across Saudi airports. The licensing process for ground handling and air cargo service providers has been streamlined as well.

Foreign airlines will see benefits from simplified procedures, including the abolition of the economic licence requirement for charter flights, which will reduce operational costs. General Aviation operators will enjoy more flexibility due to the elimination of ’empty-leg’ flight restrictions, thus improving international flight operations and network connectivity. Additionally, a new certification process will be introduced to allocate international traffic rights on limited routes to national carriers, promoting equal opportunities.

To prepare the sector for these sweeping changes, the regulations were formulated and ratified after thorough consultations with stakeholders in the aviation sector. Some of the provisions will be gradually implemented over 18 months. GACA will support the enactment of these regulations with a comprehensive implementation strategy communicated to industry operators.

Read also: SAUDIA AND RIYADH AIR FORGE LANDMARK STRATEGIC ALLIANCE

Photo – top of page – Ashim D’Silva / Unsplash