Air Arabia Alliance Announced As New National Low-Cost Carrier Based In Dammam

The General Authority of Civil Aviation (GACA) has revealed the winner of a competition to establish a new low-cost airline in Dammam. The "Air Arabia Alliance" will operate both domestic and international flights from King Fahd International Airport. This initiative aims to enhance air connectivity, increase seat availability, and improve service quality for travellers in the Eastern Region.

During a ceremony, Prince Saud bin Naif bin Abdulaziz, Governor of the Eastern Region, introduced the new identity and master plan for King Fahd International Airport. The event also showcased master plans for Al-Ahsa and Qaisumah international airports, launched the Dammam Airports Strategy, and inaugurated development projects worth over SAR1.6 billion.

The announcement followed a public competition that attracted bids from various low-cost airlines. The winning proposal came from a consortium including Air Arabia, Nesma Group, and Kun Investment Holding. This group presented the most competitive bid to establish a Saudi-majority-owned national carrier headquartered in Dammam.

Minister of Transport and Logistic Services Saleh Al-Jasser highlighted the Kingdom's progress in aviation projects under its leadership. He stated that launching this new carrier aligns with the National Transport and Logistics Strategy initiated by Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud.

GACA President Abdulaziz Al-Duailej emphasised that establishing this carrier is crucial for achieving aviation program goals. He noted GACA's dedication to fostering a competitive environment with more travel options across Saudi Arabia, particularly in the Eastern Region.

The new airline is set to expand travel options by serving 24 domestic and 57 international destinations. It aims to connect nearly 10 million passengers annually through King Fahd International Airport by 2030. This project will create over 2,400 direct jobs and contribute to GDP growth targets under the aviation program.

Future Prospects

The alliance plans to complete licensing procedures and commence operations by 2026. This move supports economic development and tourism in Dammam and the broader Eastern Region. The volume and quality of bids received underscore Saudi Arabia's strong investment appeal in its aviation sector.

The new carrier will play a significant role in supporting strategic goals within the aviation sector. By enhancing connectivity and offering more choices for travellers, it aligns with broader objectives under the National Transport and Logistics Strategy.

With inputs from SPA