Saudi Arabia Announces Launch of New Low-Cost Airline Based in Dammam
This Sunday, the General Authority of Civil Aviation of Saudi Arabia (GACA) officially announced the licensing of a new national low-cost airline. The consortium is led by Emirati carrier Air Arabia, in partnership with Saudi firms Kun Investment Holding and Nesma Group. The new airline will be based at King Fahd International Airport in Dammam and promises to transform the country’s aviation landscape.
Ambitious Operational Targets
The new operator will begin operations with a fleet of 45 aircraft, serving 24 domestic cities and 57 international destinations. By 2030, the goal is to transport around 10 million passengers annually and create over 2,400 direct jobs.
This strategy addresses a clear need: to increase seat capacity, improve connectivity, and offer more affordable travel options, particularly in Saudi Arabia’s Eastern Province.
Air Arabia: Regional Expertise for Saudi Arabia
Founded in 2003 in Sharjah, UAE, Air Arabia pioneered the low-cost model in the Middle East. Its fleet of approximately 60 Airbus A320 aircraft serves over 170 destinations across more than 30 countries. Until now, its presence in Saudi Arabia was limited to international flights to cities like Riyadh, Jeddah, and Dammam.
This project marks a shift. For the first time, Air Arabia will operate a Saudi-licensed airline with Dammam as its operational hub. This move positions the city as a strategic aviation center, promising more direct flights, competitive pricing, and greater accessibility for residents in the eastern part of the country.
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Key Players in the Alliance
The consortium behind the new airline comprises three entities:
- Air Arabia (UAE): A leader in budget air travel with an extensive network in key regions.
- Kun Investment Holding (Saudi Arabia): A Saudi firm providing capital and strategic local market connections.
- Nesma Group (Saudi Arabia): A diversified conglomerate with aviation and infrastructure expertise, thanks to its prior airline operations.
This approach blends international experience with local roots, aligning with Saudi regulatory frameworks and avoiding a standalone foreign-operated model.
Why Dammam?
Historically, Riyadh and Jeddah have dominated Saudi Arabia’s aviation growth. Choosing Dammam as the base represents a strategic shift: it aims to decentralize the national aviation sector and strengthen a key economic hub that has been underserved until now.
The benefits are clear:
- Improved connectivity for Eastern Province residents
- More regional and domestic travel options
- Support for tourism and business travel in the area
Additionally, it alleviates pressure on larger airports and supports the national goal of establishing multiple aviation hubs instead of concentrating traffic in a few.
A Key Piece of Vision 2030
The launch of this new airline aligns perfectly with Saudi Arabia’s Vision 2030, which seeks to transform the country into a global transportation hub and diversify its economy. Key targets include:
- Attracting $100 billion in aviation investments
- Serving over 330 million passengers annually
- Connecting to more than 250 global destinations
- Increasing the aviation sector’s contribution to GDP
- Opening the market to new operators
This project is not intended to compete with premium carriers like Riyadh Air, which targets the luxury and long-haul segments. Instead, it focuses on meeting a specific need: affordable short- and medium-haul flights for a broader audience.
Impact on Saudi Aviation
The expected benefits extend to both passengers and the country:
- Expanded Routes: 81 destinations in total, with a focus on connections from Dammam
- Affordable Prices: Increased competition and flexible pricing
- Job Creation: Over 2,400 direct jobs in the sector
- Regional Growth: Support for the economic development of the Eastern Province
According to Saudi Arabia’s Ministry of Transport and Logistics Services, the initiative will expand flight options, stimulate competition, and directly contribute to the country’s strategic goals for air transport.
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