Riyadh Air spreads its wings

Saudi Arabia has unveiled a new international airline called Riyadh Air. Riyadh Air aims to compete with Etihad Airways, Emirates and Qatar Airways. These airlines have used their geographical location to build world-class airlines and thus attract business and leisure travelers.

From oil to tourism

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, recently placed an order for 50 Airbus A350-1000 aircraft. The new airline - and the multibillion-dollar investment - comes as Saudi coffers are filling up on higher crude oil prices. The windfall has helped Crown Prince Mohammed bin Salman push ahead with some of his most ambitious efforts to diversify the economy away from the booms and busts that have come with the oil industry that has made Saudi Arabia rich.

Aramco, Saudi Arabia’s state oil company, generated $436 billion in revenue in 2024. This huge revenue gives Crown Prince Mohammed bin Salman ample financial headroom to fulfill his promises to turn Saudi Arabia into a regional business and tourism hub.

Convenient location

By creating a new airline, Riyadh is also challenging a market long dominated by its smaller neighbor, the United Arab Emirates. As key members of the Organization of Petroleum Exporting Countries, the two have long been close allies when it comes to regional politics and oil policy.

Saudi Arabia has unveiled its plans to create a new international airline for the first time in 2021. Emirates, controlled by the UAE emirate of Dubai, Qatar Airways and Gulf Air of Bahrain have for years used the location of their home airports to position themselves as long-haul airlines for travelers between Asia and Europe and to and from North America.

Dubai and Qatar have also used their airlines to transform their small, desert-like emirates into world-class tourist hotspots. Qatar hosted the 2022 FIFA World Cup. Dubai, on the other hand, has over the years built an industry of luxury, less expensive resorts and hotels that are popular with European tourists.

A gateway to the world

Saudi Arabia had previously said it planned to launch a second national airline as part of a broader program to create new economic sectors not related to oil. Saudi Arabian Airlines, known as Saudia, currently serves as the country's national carrier. Riyadh Air will use Riyadh as its home base, while Saudia will focus even more on Jeddah.

The government has set aside $1 trillion over the next decade to transform the kingdom into a mass tourism destination . A nascent cruise industry, luxury Red Sea resorts and eco-lodges in the desert are all in the works. A second international airport is also being built in Riyadh, called King Salman International Airport.

The new airline will "take advantage of Saudi Arabia's strategic geographic location between the three continents of Asia, Africa and Europe, making Riyadh a gateway to the world and a global destination for transportation, trade and tourism.

The new airline is expected to contribute $20 billion to Saudi Arabia's economic growth and the creation of 200,000 direct and indirect jobs. To achieve these goals, Tony Douglas, former CEO of Etihad, has been hired as the CEO of Riyadh Air. In addition, Peter Bellew, an experienced professional with a background at Ryanair, easyJet and Malaysia Airlines, has been appointed COO.

Riyadh Air expects to operate its first commercial flights in 2026.

Boeing 787 Dreamliner, A321neos and A350-1000s

The goal is for Riyadh Air to eventually serve 100 destinations. With this, the airline will compete with other major players such as Emirates, Etihad Airways, Qatar Airways and Turkish Airlines, and act as a network carrier between east and west, along with Saudia and NEOM. One of the two paintings was recently unveiled that Riyadh Air (IATA code RX) will use on their aircraft.

Riyadh Air will have the following aircraft at its disposal: 60 Airbus A321neo's, 25 Airbus A350-1000's, and 39 Boeing 787-9's. Different aircraft for different purposes and distances.