Saudi Arabian authorities have granted Air Arabia and Saudi partners the right to establish a national low-cost carrier to operate from Dammam’s King Fahd airport.
The airline is intended to build a fleet of 45 aircraft, and serve 57 international and 24 domestic destinations.
Saudi Arabian civil aviation regulator GACA states that the carrier will increase seat capacity and “enhance air connectivity” for the eastern region of the kingdom, transporting up to 10 million passengers annually.
It says partners comprising the ‘Air Arabia Alliance’ have secured the right to create the operation and provide “more competitive choices” for customers.
Air Arabia is based in Sharjah and uses a fleet of Airbus A320-family jets. It has already set up a number of joint-venture carriers.
“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,” says Air Arabia group chief Adel Ali.
The Air Arabia Alliance includes private Saudi-based firm Nesma Group, which has a diverse portfolio of interests including aviation, logistics, energy, real estate, hospitality, telecoms, and other activities.
Nesma says the GACA competition for a Dammam carrier will create over 2,400 direct aviation positions and “contribute to tourism development”.
Another Saudi company, the Jeddah-based Kun Investment Holding, is also participating. It similarly has multiple investment interests, such as tourism, leisure, construction, medical services, and real estate.
Kun Investment says the GACA award is an “important step that reflects our shared vision and commitment to supporting the aviation industry”, adding that it will contribute to the “ambitious goals” of the Saudi government’s Vision 2030 programme.
