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Saudi Arabia has announced the launch of a new national airline, called Riyadh Air, which aims to connect 100 destinations by 2030. The airline will be wholly-owned by the Public Investment Fund (PIF) and will be chaired by PIF governor Yasir Al-Rumayyan, while industry veteran Tony Douglas will serve as Chief Executive Officer. Crown Prince Mohammad bin Salman bin Abdulaziz made the announcement on Sunday, stating that the airline would leverage Saudi Arabia’s strategic geographic location between Asia, Africa and Europe.
The establishment of Riyadh Air is expected to add $20 billion to Saudi’s non-oil growth and create over 200,000 direct and indirect jobs. Its senior management will include both Saudi and international expertise, and the airline will be based out of the Saudi capital.
The PIF is in discussions with Boeing and Airbus regarding orders for approximately 80 jets, marking the first aircraft purchases for the new airline. According to Bloomberg, the order value could reach $35 billion. An official statement confirmed that Riyadh Air would prioritize sustainability and safety practices, while operating modern aircraft equipped with the latest technology.
This announcement presents a challenge for the existing major airlines in the region, namely Emirates, Etihad, and Qatar Airways. However, the ambitious plans for Riyadh Air demonstrate Saudi Arabia’s commitment to diversifying its economy and reducing its reliance on oil revenue. With its strategic location and significant investment, Riyadh Air has the potential to become a major player in the global aviation industry.
