Saudi Arabia’s General Authority of Civil Aviation (GACA) is still studying a plan that would allow Gulf airline companies to operate domestic flights in the Kingdom, an official said earlier this week.

The authority hasn't rejected the plan, which is still under consideration by all involved parties in the Kingdom, Khaled al-Khaibary, a GACA spokesman said.

He didn't specify when the authority will reach a decision on the proposal, which would improve domestic air transport services in the Arab world's largest economy.

In April, the Shura Council, an advisory body appointed by King Abdullah bin Abdul-Aziz, said it was looking at a proposal to give Gulf carriers a license to operate domestic flights in order to meet growing demand.

The Kingdom currently has two operational airlines: state-owned Saudi Arabian Airlines and low-cost carrier National Air Services.

Its third carrier, Sama Airlines, ceased operating last year, after talks with the government failed to yield a commitment to support the company.

Source: Zawya-Dow Jones Newswires