Air Arabia-Led Group to Launch New Saudi Budget Airline in 2026

Saudi Arabia’s General Authority of Civil Aviation (GACA) has named a consortium led by Air Arabia as the winner of the tender to launch a new national low-cost carrier. The new airline will be based in Dammam and is scheduled to begin operations in 2026, boosting connectivity across the kingdom’s Eastern Province.

The winning consortium, Air Arabia Alliance, includes Air Arabia, Saudi conglomerate Nesma Group, and Khan Investment Holding Company. According to GACA, the airline plans to operate 45 aircraft, serve 24 domestic and 57 international destinations, create over 2,400 direct jobs, and carry 10 million passengers annually by 2030.

GACA president Abdulaziz bin Abdullah Al-Duailej confirmed that the airline will now work on securing its economic and technical licenses. Transport Minister and GACA Chairman Saleh bin Nasser Al-Jasser emphasized that the new LCC supports Saudi Arabia’s Vision 2030 goals to enhance transport services and establish the country as a global logistics hub.

The announcement was made during a ceremony led by Eastern Province Governor Saud bin Nayef bin Abdulaziz, who also unveiled master plans for regional airports in Dammam, Hofuf Al Ahsa, and Qaisumah. Aviation development projects worth SAR1.6 billion (USD427 million) were also launched.

The new airline will add competition to flyadeal, Saudia’s low-cost arm, which currently serves 14 domestic and two international destinations from Dammam. Air Arabia’s new venture joins its existing joint-venture portfolio, which includes Air Arabia Abu Dhabi, Air Arabia Egypt, and Air Arabia Maroc.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com