Saudi Arabia has announced the launch of its much-awaited new national airline – Riyadh Air. The announcement was made by Crown Prince Mohammad bin Salman bin Abdulaziz.
An official statement said that Riyadh Air would acquire modern aircraft equipped with the latest technology and will adopt world class sustainability and safety practices.
Boeing is said to be the final stage of closing in on a new order valued at approximately $35 billion by Saudi Arabia Public Investment Fund, sources claim. Although the details of the significant aircraft order are yet to be fully revealed, as per sources the Saudi Arabia Public Investment Fund will likely be taking in more widebodies than narrowbodies for the new airline.
The plan of the new national airline was drawn up with a widebody fleet strategy plan that would help cater to long-haul international and intercontinental air travel demand, with this plan experts believe that the new airline could be housing a future fleet of Boeing 787s and 777s.
The new airline aims to leverage Saudi Arabia’s strategic geographic location between the three continents of Asia, Africa and Europe and connect 100 destinations by 2030. The airline will be based in its hub at King Khalid International Airport, Riyadh.
The airline will be wholly-owned by the Public Investment Fund and chaired by PIF governor Yasir Al-Rumayyan. Tony Douglas, former CEO of the Etihad Aviation Group will be the Chief Executive Officer of the new airline.
The airline is expected to add $20 billion to Saudi’s non-oil growth and create more than 200,000 direct and indirect jobs
“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,” the Saudi Press Agency said in a statement.
The new airline is expected to face competition from established carriers like Emirates, Etihad and Qatar.