In the aviation industry, underestimating startups can be a strategic error, especially when considering the dynamic landscape of the Middle East. Currently, Qatar Airways reigns as a leading airline in the region, locking horns with giants like Emirates, Etihad, and Oman Air. However, Qatar Airways may need to turn their attention to a rising player from Saudi Arabia – Riyadh Air.
Riyadh Air, a name now making significant ripples in the industry news, is far from being a small-scale airline. Their current plans and aircraft orders certainly suggest that they have big ambitions. There’s even a potential that Qatar Airways may experience an employee exodus towards this promising new competitor.
As of now, while their potential remains to be fully realized, it would be unwise for Qatar Airways to overlook Riyadh Air. The latter’s prospects are immense. But one might wonder, who exactly is Riyadh Air?
Riyadh Air Will Be No Small Player
Making its presence felt in the aviation industry is Riyadh Air, an upcoming airline based in Saudi Arabia. Even though its inaugural flight won’t take place until 2025, this budding aviation powerhouse is predicted to shake up the existing order amongst the Middle East’s leading airlines. Riyadh Air’s ownership traces back to the Saudi Arabia’s Public Investment Fund, and it is poised to establish a monumental aviation hub in the heart of Saudi Arabia’s capital city, Riyadh.
The Power Behind the New Player
In March, the new airline made a significant announcement by appointing Tony Douglas, the former CEO of Etihad Airways, as its CEO. With Douglas at the helm, Riyadh Air is set to initiate its first flights in 2025. Industry experts believe that the new airline will be a formidable competitor for the reigning trio of Emirates and Etihad, based in the UAE, and Qatar Airways in Doha. Beyond the Middle East, it could trigger price-based competition among international airlines, including the likes of Turkish Airways and Singapore Airlines.
Riyadh Air’s Future Ambitions
The ambitious objective for Riyadh Air is to serve 100 destinations through its Riyadh hub by 2030. With around 80% of passengers to Middle Eastern hubs being transit flyers, this ambitious plan could potentially lead to a price war with its competitors. This ambition signals the vision of Tony Douglas, who aims to create a “digitally native airline,” with a laser-like focus on detail and innovation. Riyadh Air’s timing is instrumental, as it aligns with Saudi Arabia’s Vision 2030, a strategic framework for the country’s future development.
Riyadh Air and Saudi Arabia’s Grand Plan
Riyadh Air forms an integral part of Saudi Arabia’s larger plan to position Riyadh as a central transportation hub and boost tourism as a strategy to diversify its oil-dependent economy. The new airline recently placed an order for 72 Boeing 787-9 Dreamliner jets, 39 of which are confirmed with an option to acquire 33 additional 787-9s. The delivery of these aircraft is scheduled for 2025, which will also mark the launch of Riyadh Air’s flight network. Furthermore, Boeing may sell 150 737 MAX narrowbody jets to the airline.
As Riyadh Air gets ready for takeoff, its home base, Riyadh’s King Khalid International Airport, is preparing for a significant upgrade. This upgrade is a key part of Saudi Vision 2030 and the National Tourism strategy, which aims to attract 100 million visits to Saudi Arabia annually by 2030 and increase the tourism sector’s contribution to GDP by over 10%.
Riyadh Air appears set to aggressively stake its claim in the aviation industry, akin to seizing the “bull by its horns”. This airline could pose a formidable challenge to Qatar Airways, not just in terms of passengers, but also in attracting the best talent. It is anticipated that Riyadh Air will conduct global hiring, potentially offering employees from airlines like Qatar Airways more competitive compensation and a superior work environment.
Though these are still plans, they cannot be dismissed easily. After all, we’re discussing a state-backed startup airline, funded by an oil-wealthy nation. Therefore, it’s a spectacle worth attention. Riyadh Air is emerging as a promising entity with expansive plans. Now, we wait to see their aircraft orders materialize, and their planes take to the skies, likely beyond the year 2025.
First love never dies. I fell in love with airplanes and aviation when I was a kid. My dream was to become a pilot, but destiny led me to another path: to be an aviation digital media content creator and a small business owner. My passion for aviation inspires me to bring you quality content through my website and social accounts. Aviation is indeed in my blood and blog!
