Air Arabia to co-launch Saudi budget airline

A consortium led by Air Arabia has won the right to establish and operate a new national low-cost airline in Saudi Arabia, based in Dammam.

 

The winning bid from UAE-based Air Arabia, Nesma Group and KUN Holding (both Saudi entities) was selected by the General Authority of Civil Aviation’s (GACA) to operate out of King Fahd international Airport.

 

The as-yet-unnamed airline, but likely to be called Air Arabia Saudi Arabia if previous brand extensions are anything to go by (such as Air Arabia Abu Dhabi and Air Arabia Egypt), will aim to operate 24 domestic and 57 international destinations with 45 aircraft by 2030.

 

The goal is to serve 10 million passengers and contribute to tourism growth and economic development in the Eastern Province.

 

“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,” said Adel Al Ali, Group CEO of Air Arabia.

 

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He added: “Through our proven economic model and regional expertise, this new partnership will deliver a reliable and value-driven travel experience for passengers.”

 

The announcement was timely given it came just days after a major shakeup of the region’s low-cost carrier market with the withdrawal of Wizz Air from Abu Dhabi in the UAE. Other airlines were quick to fill that void, including Air Arabia who two days later announced it would boost capacity by 40% in 2025 from Abu Dhabi.

 

The same day (16 July), Abu Dhabi-based flag carrier Etihad Airways added seven new destinations to its network that were previously served by Wizz Air – including key cities in Kazakhstan, Azerbaijan, Romania, Georgia, Uzbekistan, Armenia and Saudi Arabia.

 

The new Air Arabia airline in Saudi Arabia is another boost to its aviation industry that is flying high in 2025, with passenger numbers soaring, networks expanding and airlines implementing bold growth strategies.

 

These factors have combined to see the kingdom post a 15% hike in air passenger numbers in 2024, reaching 128 million, according to GACA in its Air Traffic 2024 Report. Of those 59 million (46%) were on domestic flights and 69 million (54%) on international routes.

 

According to annual rankings recently released from travel tech company AirHelp, Dammam was named the tenth best airport in the world, with four airports from Saudi in the global top 12.

 

For more information, visit www.airarabia.com