RIYADH: Saudi Arabia’s General Authority for Civil Aviation (GACA) has awarded carrier licences to Qatar Airways and Gulf Air, the Saudi state news agency (SPA) reported yesterday, the first foreign airlines to win such a licence in the kingdom. 

The licence, which 14 companies had applied for, is to operate both local and international flights.

Until now only the national carrier Saudi Airlines and budget airline National Air Services have serviced a domestic market of around 27 million people.

With Saudi Arabia’s price cap on domestic flights, private airlines have struggled with their profit margins.