The Saudi government plans to launch a new mega-airline, RIA, in the last quarter of 2022.
Arabian press say it will be valued at US$30bn (R520bn) and the new venture will be backed by Saudi Arabia’s Public Investment Fund.
The airline is to slot into the Saudi kingdom’s ambitious US$100bn (R1,73 trillion) tourism strategy “Vision 2030” an investment in the aviation sector over the next eight years leading up to 2030.
The bulk of the US$100m budget will go towards establishing this new national carrier serving global routes.
Arabian press say the airline will be designed to be a premium “global superconnector” and will be modelled after Emirates and Qatar Airways. According to Arabian press reports, Saudia will remain Saudi’s flag carrier and will continue to focus on Hajj and other pilgrimage traffic while RIA will be the second national carrier, operating from Riyadh.
Insiders believe the preferred aircraft for the new airline will be Airbus A320 and Boeing 737 types.
Arabian press reports say Saudi budget carriers Flynas and Flyadeal will concentrate on low-cost domestic and regional travel and nearby international routes. It is not known if they will be regarded as feeder airlines to the new airline
As part of its Vision 2030 strategy, Saudi Arabia has announced it will streamline and relax its visa options for residents from multiple countries.
A CEO of the airline is yet to be appointed.
