Air Arabia-led consortium wins bid to launch new Saudi low-cost airline
Saudi Arabia is set to strengthen its aviation sector with the launch of a new low-cost airline. The General Authority of Civil Aviation (GACA) has confirmed that a consortium led by UAE-based Air Arabia, together with Kun Investment Holding and Nesma Holding, has won the bid to operate the new carrier.
Based at King Fahd International Airport (DMM) in Dammam, the airline will begin operations with a fleet of 45 aircraft, serving 24 domestic and 57 international destinations. By 2030, it aims to carry 10 million passengers annually and create over 2,400 new jobs in the sector.
“This initiative will drive economic development and promote tourism in Dammam and the wider Eastern Region,” GACA wrote in the statement released on July 20, 2025.
The launch of the carrier will support Saudi Arabia’s Vision 2030 and the National Transport and Logistics Strategy, which seek to diversify the economy and position Saudi Arabia as “a leading regional aviation hub.”
To achieve the goals of the Aviation Program under the National Transport and Logistics Strategy, #GACA announces that «AirArabia Alliance» has won as the new low-cost national carrier at King Fahd International Airport in Dammam, with the aim of enhancing air connectivity in the… pic.twitter.com/8IRyOb2yD5— هيئة الطيران المدني (@ksagaca) July 20, 2025Air Arabia, the Middle East and North Africa’s first and largest low-cost carrier, currently serves more than 170 routes from hubs in Sharjah, Egypt, Morocco, and Jordan. In this new project, Air Arabia will be in charge of running the airline, applying its experience in budget air travel, managing planes, and taking care of passenger service.
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“We are proud to have been selected by GACA to launch a new national low-cost airline headquartered in Dammam. As a leading low-cost operator in the region, this milestone reaffirms our commitment to supporting the growth and development of the Kingdom’s aviation sector,” said Adel Al Ali, Group CEO of Air Arabia.
The new budget airline is expected to start operations in 2026.The post Air Arabia-led consortium wins bid to launch new Saudi low-cost airline appeared first on AeroTime.
Saudi Arabia is set to strengthen its aviation sector with the launch of a new low-cost airline. The…
The post Air Arabia-led consortium wins bid to launch new Saudi low-cost airline appeared first on AeroTime.
