Riyadh, July 21 - Saudi Arabia unveiled plans to establish a new national low-cost airline, set to commence operations by 2030 with a fleet of 45 aircraft, as reported by state media. This ambitious initiative, spearheaded by the Saudi General Authority of Civil Aviation (GACA), aims to enhance air connectivity, boost tourism, and provide competitive travel options for passengers. The airline will be based at King Fahd International Airport in Dammam, a major hub in the Eastern Region of the Kingdom, and is expected to serve 24 domestic destinations and 57 international routes, with a target of transporting 10 million passengers annually. This development marks a significant step in Saudi Arabia’s broader vision to diversify its economy and strengthen its aviation sector as part of the Vision 2030 initiative.
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The new carrier will be operated by a consortium of three companies, including the United Arab Emirates-based Air Arabia, alongside Kun Investment Holding and Nesma. Air Arabia, a well-established low-cost carrier in the Middle East, brings significant expertise to the venture, having successfully operated budget flights across the region. The consortium’s bid was selected by GACA, highlighting the Kingdom’s intent to leverage experienced operators to ensure the airline’s success. The decision to base the airline in Dammam underscores the strategic importance of the Eastern Region, which is a key economic hub due to its proximity to major oil and industrial facilities. By operating from King Fahd International Airport, the airline aims to capitalize on the region’s growing demand for affordable air travel, both domestically and internationally.
The airline’s operational model will focus on the low-cost carrier framework, offering stripped-down services to keep ticket prices competitive. This approach eliminates many of the additional amenities typically provided by full-service airlines, allowing for lower fares that appeal to budget-conscious travelers. The planned fleet of 45 aircraft, while not detailed in terms of specific models, is expected to consist of modern, fuel-efficient planes to maximize cost savings and environmental efficiency. The airline’s extensive route network, covering 81 destinations, reflects an ambitious scope that aims to connect Saudi Arabia with key markets across the Middle East, Asia, Africa, and potentially beyond. This connectivity is poised to support the Kingdom’s tourism goals, which include attracting millions of visitors annually as part of Vision 2030. Beyond passenger transport, the new airline is projected to have a significant economic impact. According to GACA, the initiative will create over 2,400 direct job opportunities, contributing to employment growth in the aviation sector and related industries. The Kingdom’s Minister of Transport and Logistics Services, Saleh al-Jasser, emphasized that the airline will enhance competition within the aviation market, providing travelers with more options and improving service quality. This move aligns with Saudi Arabia’s efforts to liberalize its aviation sector and foster a competitive environment that benefits consumers.
The establishment of this low-cost carrier comes at a time when Saudi Arabia is investing heavily in its aviation infrastructure. The Kingdom has already introduced other airlines, such as Riyadh Air, and is expanding its airports to accommodate growing passenger numbers. The new Dammam-based airline complements these efforts by targeting the low-cost segment, which is expected to appeal to a broad demographic, including young travelers, families, and business passengers seeking affordable options. By 2030, the airline aims to be a key player in the region’s low-cost aviation market, further solidifying Saudi Arabia’s position as a global aviation hub. This development also reflects the Kingdom’s strategic partnerships with regional players like Air Arabia, fostering collaboration within the Gulf Cooperation Council (GCC) to strengthen the aviation ecosystem. The new airline is expected to drive economic growth, enhance regional connectivity, and support Saudi Arabia’s long-term vision of becoming a leading destination for tourism and business. As preparations move forward, the aviation industry will closely watch the rollout of this venture, which promises to reshape the low-cost travel landscape in the Middle East.