Over the past year, Saudi Arabia has been adding the finishing touches to its new international airline launching in Q4 which is expected to be called RIA.
While RIA is the name submitted to Saudi Arabia’s Public Investment Fund (PIF), the final decision will likely be made by Crown Prince Mohamed Bin Salman.
RIA wants to outperform Emirates
The PIF are backing the new airline and according to sources close to it, the new airline hasn’t appointed a CEO as of yet but it aims to compete with the UAE’s Emirates airline.
“We are talking about a brand-new airline that aims to do what Emirates did in a quarter of the timescale. It’s unprecedented in the history of aviation. It’s also why they have yet to appoint a CEO – whoever takes this job will have to deliver the most ambitious targets you can imagine.” said the source.
Based out of Riyadh’s King Khalid International Airport (RUH), the new airline will become Saudi Arabia’s second national carrier, joining SAUDIA who operate out of Jeddah’s King Abdulaziz International Airport (JED).
Saudi Arabia’s $100 billion investment
Saudi Arabia are investing $100 billion into the aviation sector over the next eight years which will go towards establishing the new airline flying global routes.
“Right now, about 60 percent of all air traffic into Saudi comes from the Middle East. Asia-Pacific is around 20 percent, Africa just 10 percent – this is where the huge potential is.” said the source.
Vision 2030
This investment is part of the country’s Vision 2030 which aims to harness the Kingdom’s potential to achieve its ambitions. It draws on the nations intrinsic strengths which include using its investment power to create a more diverse and sustainable economy as well as using its strategic location to build its role as an integral driver of international trade.
The Kingdom is currently aiming for 30 million international transit passengers by 2030. To achieve this, sources say the new airline will need to operate over 150 routes across Europe, Africa, Asia, North America and South America. Emirates currently fly to 158 destinations in 85 countries.