On Sunday March 12th, Saudi Arabia announced the creation of Riyadh Air, its second national airline, displaying its ambition to make Riyadh an air hub capable of competing with its Gulf rivals. The new airline is owned by the Public Investment Fund (PIF), and will be chaired by Yasir Al-Rumayyan, Governor of PIF. Former Etihad Airways CEO Tony Douglas has been appointed Chief Executive Officer. The airline’s senior management will include Saudi and international expertise.
Based in the capital and owned by the kingdom’s sovereign wealth fund, Riyadh Air aims to “launch flights to more than 100 destinations worldwide by 2030,” the official SPA agency said. The airline is expected to add USD20 billion to non-oil GDP growth and create more than 200,000 direct and indirect jobs.
The new airline will consolidate our country’s position as an international aviation hub.
Saleh Al-Jasser, Saudi Transport Minister
The monarchy is pursuing ambitious goals as part of Saudi Crown Prince Mohammed bin Salman’s sweeping reform program, with the ambition of tripling its air traffic to 330 million passengers by the end of the decade. Riyadh Air will operate a “fleet of state-of-the-art aircraft,” the SPA agency said, without specifying the number or type of aircraft.
According to the Wall Street Journal, the sovereign wealth fund was “close to an agreement” with the aircraft manufacturer Boeing for an order “valued at $35 billion”. Last November, the authorities announced the construction of a new 57-square-kilometer airport in Riyadh, which is expected to accommodate 120 million passengers by 2030 and 185 million by 2050.
The kingdom’s busiest international airport is currently in Jeddah, on the Red Sea, where the national airline Saudia is based. This coastal city welcomes millions of Muslims every year for the hajj and Umrah (small pilgrimage) to Mecca.
For some years authorities have been trying to position Riyadh as a rival to the regional business center, Dubai, in the United Arab Emirates, whose airline is the largest in the Middle East. “The new airline will consolidate our country’s position as an international aviation hub and global logistics center,” Saudi Transport Minister Saleh Al-Jasser said on Twitter.
The establishment of Riyadh Air is part of PIF’s strategy to unlock the capabilities of promising sectors that can help drive the diversification of the local economy. It will enable a more financially resilient aviation ecosystem in Saudi Arabia, supporting the industry’s global competitiveness in line with Vision 2030.
