This regulation is entrusted with the oversight all activities performed under those economic licenses issued by the Author-ity for the provision of the following services at airports in the Kingdom:

• Ground handling services;

• Air cargo services.

• Any entity seeking to provide ground handling services or air cargo services at any airport within the Kingdom may apply for an economic license from the Authority, in accordance with the provisions outlined in Article 6.

• Save as otherwise provided in these regulations or any other relevant decisions by the Authority, the Airport Operator shall ensure free market access to third parties for the provision of ground handling services, freedom to self-handle and ensure uninterrupted provision of ground handling services at the airport under its management.

• The Authority may, on an application made to it by the Airport Operator, determine that, at the airport, the number of suppliers authorized to provide one or more airside services to third parties shall be limited. A determination shall specify:

  a. The airport and, where appropriate, the part of the airport to which it applies;

  b. The airside services to which it relates; and

  c. The number of suppliers authorized to provide those services, which shall be no fewer than three for category A airports, and no fewer than two for category B airports for each category of such services.

  4. The Authority retains the right to amend or revoke any decision made under Paragraph 3 above in such cases where it deems it necessary or upon request from the Airport operator concerned, a ground handling service provider, or an airport user, and after consulting with the concerned Airport operator.

  5. On an application made to it by the Airport Operator, the Authority may determine that the right to self-handle shall be limited in relation to one or more airside services for such period as the Authority deems fit. A determination shall specify:

  a. The airport and, where appropriate, the part of the airport to which it applies;

  b. The airside services to which it relates;

  c. The number of airport users who may exercise the right to self-handle in relation to those services, which shall be no fewer than two for each category of such services;

  d. The airport users who may exercise that right; and

  e. The period for which it shall apply.

• Where there are specific airport space or capacity constraints, arising in particular from congestion and poor area utilization, making it difficult to open up the market for the supply of ground handling services for third parties to the degree provided for in this regulation, the Authority may, on an application made to it by the Airport operator concerned, determine to:

• Limit the number of suppliers of one or more categories of ground handling services, other than airside services, to no fewer than three suppliers at category A airports, and no fewer than two suppliers at category B airports; or

• Reserve the provision of one or more categories of airside ground handling services to two or less suppliers at category A airports, or to a single supplier at category B airports.

2. Where there are specific airport space or capacity constraints, arising in particular from congestion and poor area utilization, making it difficult to implement self-handling to the degree provided for in this regulation, the Authority may, on an application made to it by the Airport operator concerned, determine to:

• Reserve self-handling to a limited number of airport users for one or more categories of ground handling services other than airside services; or

• Ban self-handling or restrict it to a single airport user for one or more airside services at the airport.

• In both cases detailed in Paragraph 1 and 2 above, the determination shall specify:

  a. The airport and, where appropriate, the part of the airport to which it applies;

  b. The ground handling services to which it relates;

  c. The number of suppliers of ground handling services authorized to provide those services or, as the case may be, the number of airport users who may exercise the right to self-handle in relation to those services;

  d. In the case of a determination made regarding Paragraph 3 above, the airport users who may exercise that right;

  e. The specific constraints of available space or capacity which justify the determination;

  f. The period for which it shall apply and the date on which it takes effect.

  4. The Airport operator shall select the airport users who may exercise the right to self-handle on the basis of relevant, objective, transparent and non-discriminatory criteria.

5. If the Authority has reasonable ground to believe that the Airport operator has failed to make the selection of airport users who may exercise the right to self-handle on the basis of the criteria outlined in Paragraph 4 above, it may decide to vary the decision taken by the Airport operator.

6. The duration of the decision shall be three years, except for the cases provided for in Paragraph 1 (b) and 2 (b) above, where it will be for a period of two years. The Authority may renew this decision within 90 days before its expiration.

7. The Airport operator concerned with any of the determinations detailed in Paragraphs 3 and 4 above must provide the Authority with sufficient information regarding plans to resolve space or capacity constraints.

• The Authority is responsible for issuing economic licenses to applicants who fulfill and ensure compliance with the requirements set forth in these regulations.

• The service provider is required to adhere to the rules, regulations, and instructions issued by government agencies pertinent to the activity, along with the Authority-approved instructions issued by the IATA and ICAO.

• It is prohibited to commence the provision of ground handling services or air cargo services at any of the Kingdom's airports without possessing a valid economic license issued by the Authority.

• The applicant is obligated to fulfill the security and operational requirements within 90 days from the date of the economic license issuance.

• The license holder is expected to commence the licensed activity within a period not exceeding 90 days from the date of satisfying the requirements mentioned in Paragraph 4 above.

• The Authority may, at any time during the validity period of the economic license, request the service provider to supply evidence demonstrating compliance with all the requirements set forth in these regulations.

1- Entities seeking to obtain an economic license to provide ground handling services at one or more airports in the Kingdom shall:

• Submit an application to the Authority for a provisional license;

• Participate in the selection process conducted by the Airport operator where they wish to provide services and sign a contract with it;

• Fulfill the requirements set by the Authority to obtain an economic license to provide ground handling services.

2- Entities seeking to obtain an economic license to offer air cargo services with the exception of regulated agent and self-regulated agent services shall:

• submit an application to the Authority for a temporary license;

• sign a contract with the Airport operator where they wish to provide services;

• Fulfill the requirements from the Authority to obtain an economic license to provide air cargo services.

3- Entities seeking to obtain an economic license to provide regulated agent or self-regulated agent services shall:

• submit an application to the electronic platform approved by the Authority;

• Fulfill the requirements set by the Authority to obtain an economic license.

1- A provisional economic license is a prerequisite for any entity:

• Entering the selection process for ground handling services at any of the airports in the Kingdom;

• Seeking to sign a contract with the Airport Operator in the Kingdom for the provision of air cargo services, with the exception of regulated agent and self-regulated agent services.

2- The provision in Paragraph 1 above does not apply to applicants holding a valid economic license authorizing the provision of ground handling services or air cargo services at any airport in the Kingdom.

3- An entity seeking to supply ground handling or air cargo services with the exception of regulated agent and self-regulated agent services at an airport in Saudi Arabia shall be granted a provisional economic license by the Authority provided that:

• It provides proof of incorporation in the Kingdom;

• Holds a valid Saudi commercial registration;

• It provides proof of at least three years of relevant proven experience operating at either one of the Kingdom's airports or in any other country or that the applicant demonstrates its ability to provide the expertise to the proposed services in Saudi Arabia through the appointment of key personnel with significant relevant experience.

• It provides financial statements for the last two fiscal years or, for new applicants, submits a certificate of solvency;

• It submits a business plan covering the first two years of operations;

• A license from the Transport Public Authority shall be submitted if the applicant wants to provide freight services or express shipping services;

• A license from the Zakat, Tax, and Customs Authority shall be submitted if the applicant wants to provide handling services in a bonded zones.

4- The Authority shall take a decision on an application not later than one 15 days after all the necessary information has been submitted. A refusal shall indicate the reasons thereof.

5- The validity of the provisional economic license shall be 180 days, or until the completion of the selection process at the airports where the applicant wishes to provide ground handling services or until it signs a contract with the Airport operator for the provision of air freight services (except for regulated agent or regulated agent-own shipments), whichever comes first. The applicant shall inform the Authority of the selection process outcome within 5 days from the date of conclusion.

6- In such cases where it might be necessary, and on an application made to it by the provisional license holder, the Authority may decide to extend the validity of the provisional economic license to permit the conclusion of the selection process in which it might be engaged.

7- The provisional license alone does not permit the provision of services at any of the Kingdom's airports. If the holder of the provisional license is selected by the airport operator to provide ground handling services or signs a contract with the airport to provide air cargo services (except for regulated agent or regulated agent-own shipments), it must fulfill the economic license requirements in order for them to provide these services.

• The process for selecting a ground handling service provider will follow the provisions in Clause 1 of this Article in such cases where there is no determination made by the Authority with respect to a limitation on the number of service providers. If the number of ground handling service providers is limited through a determination made by the Authority in accordance with Article 3 or 4 of these Regulations, the process will follow the provisions in Clause 2 of this Article.

• The Airport operator shall enter into an agreement with selected suppliers of ground handling services.

• The Airport operator may suspend or cancel a contract if the supplier of ground handling services or self-handling airport user does not meet the selection requirements due to reasons of his doing.

• The Airport operator shall notify the Authority, the ground handling service provider, or the concerned airport user of the reasons for the suspension or cancellation of the contract at least 30 days before the suspension or cancellation date.

• If the Authority has reasonable grounds to believe that the Airport operator has failed to apply the selection requirements in line with the provisions of these Regulations, it may decide to vary the decision taken by the Airport operator or initiate enforcement proceedings.

  
  

  Clause 1: Airport operator selection process If the number of ground handling service providers is not specified

  
  

  • The Airport operator is responsible for defining additional requirements over and above those defined in the economic license process, based on which it will approve or reject a prospective supplier of ground handling services seeking to perform ground handling activities at that airport. The selection requirements set by the Airport operator must comply with the following principles:

    • They must be relevant to the activity provided;

    • They must be applied in a fair and non-discriminatory manner to all suppliers of ground handling services and airport users; and

    • They may not, in practice, reduce market access or the freedom to self-handle to a level below that provided for in this regulation.

  • The Airport operator shall ensure that the selection requirements are published, and the supplier of ground handling services or self-handling airport user are informed in advance of the procedure for obtaining approval.

    
    
    

    Clause 2: Airport operator selection process If the number of ground handling service providers is specified

    1- In such cases where the Authority has issued a determination in accordance with Articles 3 or 4, the Airport operator is required to publicly announce the necessary requirements for entering the selection process, the procedure for obtaining approval, and inviting a call for proposals.

    2- The Request for Proposal (RFP) from the Airport operator for the selection of ground handling service providers must include:

    • The duration of the selection process.

    • The deadline for submission of proposals.

    3- Ground handling service providers are selected via one of the following methods:
    a. Through the Airport operator, in consultation with the Airport Users Committee, provided the following conditions are met:

    • The Airport operator does not provide similar ground handling services.

    • The Airport operator does not have direct or indirect control over any ground handling service provider offering such services.

    • The Airport operator does not partner with any ground handling service provider in any of the services; or

    b. Through the Authority, in consultation with the Airport Users Committee and the Airport operator.

    4- The Airport operator may provide ground handling services independently without undergoing the selection procedures referred to in this Article, or appoint another entity to provide ground handling services at the airport in question without subjecting it to the selection process, where the Airport operator:

    • Directly or indirectly controls this entity; or

    • Under direct or indirect control by this party.

    5-If the Airport operator or another entity is authorized to provide ground handling services according to Paragraph 4, it shall represent one of the number of ground handling service providers designated as part of the Authority's decision set forth in Article 3 of these Regulations.

    6- The relevant Airport operator shall take necessary measures in accordance with these Regulations to regulate the selection procedures for authorized ground handling service providers.

    7- If the decision to limit the number of ground handling service providers is rescinded, any decision previously taken in accordance with Paragraph 6 above regarding such services shall be null and void.

    8- The selection process for a ground handling service provider must ensure that at least one of these service providers is not under the direct or indirect control of the Airport operator, a controlling entity, or any other user who has transported more than 25% of the passengers or freights, parcels and postal items registered at the airport during the previous year.

    9- A ground handling service provider is replaced if it ceases operations before the end of the specified downtime period.