Saudi Arabia launches new national airline
SAUDI Arabia’s Crown Prince Mohammed bin Salman on Sunday (Mar 12) announced the launch of Riyadh Air, a new national airline that will serve more than 100 destinations as the country looks to boost tourism and diversify the economy from oil.
The kingdom’s wealth fund has named former Etihad Aviation Group boss Tony Douglas as chief executive officer. Riyadh Air will be based in the Saudi capital Riyadh, and wholly-owned by the Public Investment Fund (PIF). Douglas had been CEO of Abu Dhabi-based Etihad until last October.
Saudi Arabia’s ambitions could present a challenge for Emirates, Etihad and Qatar Airways, the existing major airlines in the region.
The launch of Riyadh Air is part of Saudi Arabia’s strategy to help kickstart its tourism industry and make it one of the world’s most popular destinations.
It is aiming to attract 100 million visitors a year by 2030. Largely closed off to foreign visitors until 2019, Prince Mohammed is investing in resorts and airports as part of a plan to wean the economy off a reliance on oil sales.
The airline is expected to add US$20 billion to Saudi Arabia’s non-oil growth, and create more than 200,000 direct and indirect jobs. It will acquire “modern aircraft equipped with the latest technology and will adopt world-class sustainability and safety practices”, it said a statement.
The PIF is in talks with Boeing and Airbus regarding orders for about 80 jets, the first aircraft purchases for a new national airline, Bloomberg reported last October.
The Wall Street Journal reported last week that the fund is nearing a deal for Boeing jets with an order value of US$35 billion. REUTERS, BLOOMBERG
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