APPLE-C, Infrastructure, Port and Airport, Economic Update

Lebanon Revives Aviation Authority – A Step Toward Market‑Driven Skies

16:15 | 31 July 2025LIMS output
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aviation

On 17 July the Council of Ministers appointed a new Chairman and members for the Authority of Civil Aviation – the first such appointment since Law 481/2002 was enacted more than two decades ago. LIMS views this as an opening for the sector to move beyond the long‑standing monopoly held by Middle East Airlines (MEA) and Beirut’s Rafic Hariri International Airport (RHI).

LIMS argued that a properly designed authority would spur competition in order to lower fares and cargo charges, increase traffic volumes, attract investment, create jobs and reinforce Lebanon’s standing in the regional market. However, a poorly conceived regulator or misguided mandates risk excessive restrictions that would stifle growth. The sector must therefore be opened to genuine competition across multiple airlines and airports rather than concentrating activity solely at MEA and RHI.

Expanding service at Qlayat Airport is essential: it would increase capacity, provide operational flexibility, reduce costs and lure budget carriers. LIMS commends the government for pursuing a Build‑Operate‑Transfer (BOT) model for reopening Qlayat in line with Law 48/2017. Private‑sector participation would relieve the state of financing burdens and generate employment. LIMS added that an alternative – a Build‑Operate‑Own (BOO) arrangement – would give the operator permanent ownership, thereby aligning its incentives more closely with long‑term profitability and service quality. In a BOO, investors retain control over the asset and are motivated to optimize operations, whereas in a BOT they recover investment only through the concession period and may be less willing to invest in capital improvements.

In short, regulatory renewal combined with airport liberalization offers Lebanon an opportunity to unlock the full potential of its aviation sector. The government should ensure that reforms are market‑driven, transparent and competition‑oriented, lest they become another source of state overreach.

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