Riyadh airport closure halts commercial flights

Europe-bound charters rise from 90 million to 140 million won

Surge in demand from executives, wealthy residents drives up rates

War-risk insurance adds further pressure on operating costs

Flames rise at King Khalid International Airport in Riyadh, Saudi Arabia, on Oct. 8 (local time) following a strike by Yemen's Houthi rebels, an Iran-backed group. The attack killed 12 people and wounded 309 others. [Reuters]
Flames rise at King Khalid International Airport in Riyadh, Saudi Arabia, on Oct. 8 (local time) following a strike by Yemen's Houthi rebels, an Iran-backed group. The attack killed 12 people and wounded 309 others. [Reuters]

Charter rates for private jets out of Saudi Arabia have jumped more than 50% after Houthi rebel attacks forced the closure of Riyadh's international airport, with flights to Europe now costing as much as 200 million won ($150,000). Those unable to afford the prices are driving overland to neighboring countries to catch flights out.

According to the Financial Times on Tuesday (local time), surging demand for private jets from Saudi Arabia to Europe has pushed charter rates on some routes more than 50% above pre-closure levels.

Private jet broker LuxJets said a 14-seat charter from Al Qassim Airport in northern Saudi Arabia to Geneva, Switzerland, last week reached 94,000 euros ($105,000), or about 140 million won — up roughly 57% from 60,000 euros, or about 90 million won, before Houthi attacks shut King Khalid International Airport in Riyadh.

The price spike reflects the near-total collapse of Saudi Arabia's main air transport network following a series of Houthi strikes. King Khalid International Airport has been completely shut down since Oct. 10, making it effectively impossible to leave the country on a scheduled commercial flight.

More than 5,500 commercial flights have been canceled at major Saudi airports since the closure. Major European carriers including Lufthansa, Air France and British Airways have suspended or delayed their Saudi routes.

Foreign corporate executives and wealthy residents stranded in Riyadh have been traveling more than 320 kilometers north to Al Qassim Airport to access private jet services. With commercial flights cut off, demand has concentrated on smaller airports still able to operate.

Charles Robinson, chief executive of private jet booking platform EnterJets, said charter rates from Saudi Arabia to Europe had soared to as much as $150,000.

Even short-haul routes to the neighboring UAE cost between $30,000 and $50,000.

"The number of jets that can operate is limited, and with demand piling up, premiums are being added," Robinson said.

Those unable to secure a private jet are attempting to leave overland, crossing into neighboring countries such as Bahrain or Qatar and departing from airports there.

War-risk insurance premiums have also contributed to the surge in charter prices. As Houthi attacks have increased the danger of operating in Saudi airspace, the additional insurance costs required to fly have risen sharply.

Industry sources said the additional war-risk insurance surcharge for a one-way flight on a large 18-seat jet can reach as much as $20,000 — equivalent to roughly 10% of total operating costs.

The combination of scarce flights and rising war-risk insurance premiums is rapidly driving up the cost of leaving Saudi Arabia.

Western companies operating in Saudi Arabia have also begun taking steps to secure the safety of their staff, with many considering evacuating senior executives to Dubai in the UAE or repatriating them to their home countries.

However, the FT said the situation has not yet reached the scale of the mass exodus earlier this year, when tens of thousands of people fled the Middle East at once following the outbreak of the war with Iran.


sjy@heraldcorp.com