The $500 billion megaproject NEOM in Saudi Arabia is thinking about starting its own international airline.
The airline would position the breathtaking location as a hub for international tourists, with direct flights to cities in Europe and Asia. It would be the third Saudi carrier after Saudia and the soon-to-be-launched RIA.
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 also funds 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 sits in between three continents, and you can reach 40 percent of the world in a maximum of 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.”
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.
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 will 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 $100 billion investment in aviation as part of the nation’s Vision 2030 is centred on the launch of RIA. A large portion of this will go toward setting up the new carrier and any necessary infrastructure.
