Meed | Mohammed bin Salman launches Riyadh Air

Mohammed bin Salman launches Riyadh Air

13 March 2023

Saudi Arabia Crown Prince Mohammed bin Salman bin Abdulaziz al-Saud has launched Riyadh Air, a new airline wholly owned by the Saudi sovereign vehicle, the Public Investment Fund (PIF).

Riyadh Air is expected to serve more than 100 destinations around the world by 2030, making use of the kingdom’s location between Asia, Africa and Europe, the Saudi Press Agency said.

PIF governor Yasir al-Rumayyan will be chairman of Riyadh Air, while former UAE Etihad Airways’ chief executive Tony Douglas will be the CEO.

“The new national carrier will leverage Saudi Arabia’s strategic geographic location between the three continents of Asia, Africa and Europe, enabling Riyadh to become a gateway to the world and a global destination for transportation, trade and tourism,” PIF said on 12 March.

It added that the new airline is expected to add $20bn to non-oil GDP growth and create more than 200,000 direct and indirect jobs.

The airline will operate from Riyadh as its hub, while the kingdom’s first national carrier, Saudi Arabian Airlines (Saudia), will continue to be based in Jeddah.

The plan to launch a new airline and woo Douglas to become its CEO was first reported in September 2022.

Saudi Arabia is targeting a $100bn investment in the transportation and logistics sector by 2030.

The kingdom plans to transport more than 300 million passengers and five million tonnes of goods, and create links with 250 destinations, by the end of the decade, Minister of Transport and Logistics Services Saleh al-Jasser said at the Future Aviation Forum in Riyadh in May last year.

Al-Jasser said at the time that the transport ministry had converted more than 25 airports into holding companies ready for privatisation and approved “hundreds of applications” for aircraft.

He cited plans to launch new aviation companies and further develop airport facilities through headquarters in Riyadh and Jeddah.

Image: Public Investment Fund