Saudi Arabia looks set to launch a new low-cost airline. A consortium of companies comprising Air Arabia and two investment companies – Nesma Group, and KUN Holding – has announced that it has won the General Authority of Civil Aviation’s (GACA) competition to establish and operate a new national low-cost airline, which will be based at King Fahd International Airport in Dammam.
The aim for the airline is to enhance domestic and international air connectivity for the Eastern Province of Saudi Arabia. The plan is for the low-cost carrier to operate 24 domestic and 57 international destinations with 45 aircraft by 2030, serving around 10 million passengers annually from Dammam and the Eastern Province.
The partners believe the airline could create over 2,400 direct jobs in the aviation sector and significantly contribute to tourism growth and local economic development in the region.
Adel Al Ali, Group CEO of Air Arabia, stated: “We are proud to have been selected by the General Authority of Civil Aviation (GACA) to launch a new national low-cost airline headquartered in Dammam. We extend our sincere gratitude to the Authority for its trust in us. As a leading low-cost airline operator in the region, this achievement represents a key milestone that reaffirms our commitment to supporting the growth and development of the Kingdom’s aviation sector.
Through our proven economic model and regional expertise, this new partnership will deliver a reliable and value-driven travel experience for passengers and will contribute to economic growth and job creation in the Eastern Province and beyond.”
The new airline, which name of which has not yet been revealed, will join other Saudi Arabian carriers, which include Flynas (a low-cost carrier), Saudia (national flag carrier), Flyadeal (a low-cost subsidiary of Saudia), and Riyadh Air (a second national flag carrier, due to begin operations this year).
In a joint statement, Faisal Bin Saleh Al-Turki, president of Nesma Group, and Mohamed Bin Nabil Hefni, CEO of KUN Holding, added: “At Nesma and KUN, we are proud to be part of this ambitious national initiative, which is the result of a strategic partnership with Air Arabia Group. This initiative aligns with the impressive developments in the Kingdom’s tourism and aviation sectors.
Launching a new low-cost carrier from Dammam is not merely an air transport project, but a direct contribution to strengthening the tourism infrastructure and stimulating the local economy of the Eastern Province.
“This includes creating high-quality jobs, empowering national talent, and supporting aviation-related commercial activities. We believe this project reflects the private sector’s role in supporting the goals of Saudi Vision 2030 and embodies the spirit of partnership between the public and private sectors to achieve transformative strides in sustainable development.
“We look forward to this carrier becoming a model of local and international collaboration, strengthening the Kingdom’s position as a leading regional and global tourism destination.”
