Air Arabia-Led Consortium Wins Bid to Launch Saudi Low-Cost Airline

21 Jul 2025

News
Air Arabia-Led Consortium Wins Bid to Launch Saudi Low-Cost Airline

The General Authority of Civil Aviation (GACA) in Saudi Arabia has declared that a consortium headed by Air Arabia, based in the UAE, has successfully secured the bid to establish and manage a new low-cost national airline within the Kingdom.

As part of the Kingdom's National Transport and Logistics Strategy aimed at developing the aviation sector, the new carrier will operate domestic and international routes from King Fahd International Airport in Dammam.

According to a statement released by GACA on Sunday, a consortium made up of Air Arabia, Kun Investment Holding, and Nesma Group has been selected to launch a new budget airline in Saudi Arabia.

The airline is projected to serve 81 destinations by 2030 — including 24 within the Kingdom and 57 internationally — with an annual passenger capacity of around 10 million.

Plans also include operating a fleet of 45 aircraft and generating over 2,400 direct employment opportunities.

GACA noted that this initiative aims to strengthen air connectivity in the Eastern Province, boost seat availability, and provide travelers with more competitive choices. The effort supports Saudi Arabia’s broader goal of positioning its civil aviation sector as the top in the Middle East by the end of the decade.

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