Saudi Arabia’s General Authority of Civil Aviation (GACA) has announced a consortium led by Air Arabia (G9, Sharjah) as the winning bidder for the kingdom's new national low-cost carrier to be launched in 2026 in Dammam, capital of the country's Eastern Province.
The tender process was won by Air Arabia Alliance, comprising Air Arabia, the privately-owned Saudi conglomerate Nesma Group, and investment and management consulting firm Khan Investment Holding Company, the aviation authority said in a statement.
The budget start-up has pledged to operate a fleet of 45 aircraft, serve 24 domestic and 57 international destinations, create more than 2,400 direct jobs, and transport 10 million passengers annually by 2030.
GACA president Abdulaziz bin Abdullah Al-Duailej said the start-up would now work to complete the necessary procedures to obtain its economic and technical licences.
Saudi transport minister and GACA chairman Saleh bin Nasser Al-Jasser said the purpose of the new airline is to boost connectivity to/from the Eastern Province, improve the quality of passenger services, and create a more competitive environment. This is in line with the objectives of the kingdom's aviation programme, which falls under its national strategy for transport and logistics services, supporting Saudi Arabia’s broader goal of becoming a global logistics hub under its "Vision 2030" growth plan.
The announcement was made during an inauguration ceremony led by Eastern Province Governor Saud bin Nayef bin Abdulaziz, who also unveiled master plans for the Dammam, Hofuf Al Ahsa, and Qaisumah international airports and launched aviation development projects worth around SAR1.6 billion riyals (USD427 million).
The entrance of the new LCC start-up will increase competition for flyadeal (F3, Jeddah International), Saudi Arabia's existing budget carrier, which operates to 14 domestic and two international destinations from Dammam, according to ch-aviation data. flyadeal is a subsidiary of Saudia, which, in turn, is held by the country's sovereign wealth fund, the Public Investment Fund (PIF).
Besides the Sharjah-based parent company, Air Arabia Group also includes local joint-ventures Air Arabia Abu Dhabi, Air Arabia Egypt, and Air Arabia Maroc.