Saudi Arabia’s second national airline is set to launch operations from the capital, Riyadh by the fourth quarter of 2022, according to sources close to the kingdom’s Public Investment Fund (PIF), Arabian Business reported.
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Fierce competition
The new airline, likely to be branded “RIA”, is funded by the PIF, one of the world’s largest sovereign wealth funds with total estimated assets of $620 billion, as part of the kingdom’s ambitious strategy to welcome 30 million international transit passengers by 2030.
Once launched, the $30 billion airline is set to bring fierce competition to the Middle East’s commercial aviation landscape, by rivalling key players in the market, including Emirates Airline, Qatar Airways and equals.
“We are talking about a brand-new airline that aims to do what Emirates did in a quarter of the timescale,” sources told our sister title, Arabian Business, adding that the planned growth is unprecedented in the history of aviation.
“It is also why they have yet to appoint a CEO, whoever takes this job will have to deliver the most ambitious targets you can imagine,” the source highlighted.
Multi-billion investment
The launch marks the largest bulk of a $100 billion investment in the country’s aviation sector planned over the upcoming eight years.
To earn its wings and be up to par with current market frontrunners, RIA will need to operate an extended network of over 150 international routes, across Europe, North America, South America, Africa and Asia. The Dubai-based Emirates – for scale – currently operates to 158 international destinations in 85 countries.
Key source markets
Over and above, the new carrier will target multiple key international source markets, including Asia-Pacific and Africa. “Right now, about 60% of all air traffic into Saudi comes from the Middle East. Asia-Pacific is around 20%, Africa just 10%, this is where the huge potential is,” the source revealed.
