Air Arabia Launches New Saudi Budget Airline

Air Arabia's New Milestone: Commissioned for Saudi Low-Cost Airline Operation

One of the most renowned low-cost airlines in the United Arab Emirates, Air Arabia, has achieved a significant success as the relevant Saudi aviation authority announced that Air Arabia, as part of a three-member consortium, won the bid to operate the new Saudi national low-cost airline. The airline will be headquartered at King Fahd International Airport in Dammam, which will play a central role in the future air connections of the eastern region.

66 Destinations with 45 Aircraft – 10 Million Passengers Annually

The new low-cost airline has set ambitious goals: by 2030, it aims to operate flights to 24 domestic and 57 international destinations with 45 aircraft, and to transport 10 million passengers annually. This represents a significant capacity expansion in Saudi aviation, particularly in the eastern region, which has been underrepresented in international air connections so far.

A Competitive Alternative for Travelers

According to Saudi authorities, the establishment of the new airline not only helps the region's air traffic but also enhances competition, thus providing travelers with more favorable prices and more options. The new airline will create more than 2,400 new jobs, which is also an important aspect for the diversification of the economy.

Air Arabia's Expertise the Key to Success

Saudi decision-makers did not entrust Air Arabia with leading the project by chance. The UAE-based low-cost airline has been successfully operating in the region for a long time, and its business model has proven to be effective and cost-efficient. Air Arabia emphasized that with their experience and economical operations, they will offer a valuable, reliable travel experience through the new partnership.

Saudi Arabia: On the Path to Becoming a Global Aviation Hub

The establishment of the new airline is just one element of a comprehensive strategy aimed at diversifying Saudi Arabia's economy beyond oil. The kingdom plans to invest approximately $100 billion into aviation infrastructure, technology, and services by 2030, while increasing the civil aviation's contribution to GDP tenfold from the current level to about $2 billion.

In March 2023, the Saudi Public Investment Fund (PIF) announced the launch of another national airline, Riyadh Air, which aims to serve more than 100 destinations worldwide by 2030. The parallel development of the two new airlines and their different operational hubs (Riyadh and Dammam) can be seen as a strategic step aimed at ensuring that Saudi Arabia plays a key role in the global aviation network at the intersection of Asia, Africa, and Europe.

(Source of the article: Air Arabia press release.)