Saudi Arabia revealed plans for the development of its new national airline targeting international travelers, thereby gearing up to compete head-to-head with existing Middle Eastern rivals Emirates and Qatar Airways. According to two sources familiar with the matter, the new airline is expected to provide all new international flight routes and will supply connecting flights via its local airport.
The development of the new airline marks a change in strategy for the Gulf nation, which has historically focused on operating domestic and point-to-point flights via carriers such as the state-owned Saudia and its low cost subsidiary flyadeal. The Kingdom’s decision to introduce a new national airline is expected to greatly heat up the already stiff competition for passengers following months of global travel restrictions.
Plans for the new airline arose from Crown Prince Mohammed bin Salman’s decision to fuel economic diversification within the country and decrease economic reliance on oil revenues. On Tuesday, the Crown Prince announced a transportation and logistics drive, with the goal of making Saudi Arabia the fifth-largest air transit hub internationally.
Currently, the crown prince is looking to attract foreign capital to aid in the development of new industries within Saudi Arabia, which include tourism. The Kingdom’s current goal is to increase the number of annual tourists from 40 million per year to 100 million per year by 2030.
