Saudi Arabia’s $500 billion mega project NEOM is considering the launch its own international carrier, Arabian Business understands.
The airline – which would be the third Saudi carrier following on from Saudia and the soon to be launched RIA – would position the spectacular destination as a hub for international tourists, with direct flights to cities in Europe and Asia.
Although plans are at an early stage, it is understood that the Kingdom is keen to brand NEOM as a stand-alone destination with its own dedicated airline.
The mega city will cover a total area of 26,500 square kilometres and extend 170km along the coast of the Red Sea.
It is backed by the Saudi Public Investment Fund (PIF) which is also funding the new Saudi carrier RIA.
NEOM already operates direct flights to select regional and international destinations from its NEOM Bay Airport, using the current national carrier Saudia, and including NEOM branded livery.
“This comes down to geography and demand. NEOM basically sits in between three continents, and you can reach 40 percent of the world in maximum four hours flying time. Given the immense scale of this project and how it is envisaged to become one of the tourist capitals of the world, having a dedicated airline that basically just flies to NEOM and back makes a lot of strategic sense,” a source said, adding: “The issue for now is how this all fits into the current vision of having two carriers, Saudi and RIA.”
Arabian Business revealed that Saudi Arabia’s next airline will be called RIA, and will operate out of Riyadh and in the longer-term aim to compete with Emirates and Qatar Airways as a global airline. The Saudis are pursuing a dual-hub strategy, with the current national carrier Saudia operating out of Jeddah.
RIA has approached Etihad’s Tony Douglas to be its new CEO, Arabian Business understands.
Industry sources say Douglas – who has been in charge of Etihad since January 2018 – is RIA’s “top choice”. Saudi Arabia’s Public Investment Fund (PIF), which is pumping $30bn into the new airline, is believed to be confident of securing Douglas to head up the new operation.
The new airline is set to launch in the final quarter of this year. Sources suggest the initial phase will see a regional launch, using Boeing 737Max and Airbus A320 planes.
The launch of RIA is central to the $100 billion investment in aviation, as part of the country’s Vision 2030. Much of this will be spent on establishing the new carrier and associated infrastructure.
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