As Riyadh Air gears up for its inaugural passenger flight, the airline is establishing international partnerships – with a clear focus on India.
During a speech in Delhi on Wednesday, Riyadh Air CEO Tony Douglas continued to emphasize the momentum message: “We aim to be the largest start-up in our sector in the last four decades.”
This is a bold assertion, yet it holds validity. After all, Riyadh Air is not just any new airline – it enjoys the backing of the Saudi sovereign wealth fund and is dedicated to providing essential nonstop connectivity to the capital of the Kingdom.
Douglas visited India to pursue potential collaborations and lay the foundation for the airline’s commercial launch scheduled for later this year.
In terms of potential partners in India, only two major airlines are in the running: Douglas was anticipated to meet with delegates from Air India and IndiGo. In other news, Riyadh Air has appointed Bird Group as its local general sales agent (GSA), with offices in Delhi.
Why is India Significant?
In 2023, outbound tourism from India to Saudi Arabia reached 1.5 million travelers, signifying a 50% rise from the previous year. Furthermore, Indians constitute the second largest community in the Kingdom and are a vital source of expertise at Riyadh Air. India is also poised to be an essential market for transit flights.
Discussing connecting traffic, Douglas outlines the business rationale for establishing a new long-haul airline headquartered in the Saudi capital: “Currently, 93% of Riyadh’s traffic is point-to-point. Only 7% of passengers from Riyadh transfer. When you consider a location that is geographically very close, like Qatar which is just a 45-minute flight away – transfer rates exceed 80%, showcasing a stark contrast. The transfer statistics for Dubai are also notably high.”
Despite Skift’s diligent inquiries, Douglas chose not to disclose the airline’s launch destination, opting instead to keep that information under wraps. Nonetheless, he reminded us that the airline aims to connect 100 global destinations by 2030, which should encompass most major capitals as well as significant secondary cities.
Network Strategy
Although specific launch destination details are scarce, Douglas provided further insight into the airline’s overall network strategy.
In its inaugural year, when the airline will solely operate widebody Boeing 787s, the aircraft will generally service a route between Riyadh and a capital in Western Europe. Following that, it will complete a 90-minute turnaround, return to Riyadh, and then operate a shorter route, such as to Mumbai or Dubai.
Over time, it is anticipated that smaller Airbus A321neo aircraft will take over these regional routes. Importantly, Douglas also indicated that the airline will not introduce destinations where it cannot ensure at least a daily service.
Thousands of Applications from India
According to CEO Tony Douglas, India serves as a significant origin of job applicants for Riyadh Air, the new airline in Saudi Arabia. Over the past two years, the airline’s website has garnered 1.4 million applications from 146 different nationalities, with a notable percentage coming from India. The airline, which is backed by Saudi Arabia’s Public Investment Fund, is set to commence operations shortly.
Douglas remarked, “In the past two years, we have received 1.4 million applications from 146 nationalities, with 52% being women. India stands out as one of the primary source countries for these applications. We are truly humbled by the interest and trust in our brand, even though we have yet to disclose any salary details.”
Currently, Riyadh Air employs 500 individuals, including pilots and cabin crew, with Indians representing the second-largest demographic after Saudis. The airline has placed orders for up to 132 Airbus A321neos and Boeing 787 Dreamliners and is contemplating additional orders for ultra-long-range aircraft.
India plays a vital role in the market for Riyadh Air, anticipating 1.5 million Indian tourists visiting Saudi Arabia in 2024. Douglas emphasized the growth potential from India, pointing out that 93% of passengers at Riyadh are traveling point-to-point, in contrast to higher transit traffic ratios at other hubs in the Middle East. The airline intends to leverage this opportunity as its fleet continues to grow.
Gearing Up for Launch
At present, Riyadh Air possesses a single Boeing 787-9 aircraft in its fleet, which is leased from Oman Air. This aircraft is being utilized as the airline works toward obtaining its ‘AOC’ – or air operator certificate. This crucial document is granted once aviation regulators provide their official approval for an airline to commence commercial operations. Riyadh Air has already completed its proving flights and is in the process of training pilots on the 787.
“The AOC process is nearing completion, and we have a ceremony forthcoming where we’ll be waving our AOC, cutting a cake, and celebrating,” Douglas disclosed.
Following this, the airline anticipates launching flights with two 787-9 aircraft scheduled for delivery from Boeing later this year.
Do not underestimate this humble beginning. In 2023, Riyadh Air made an order for up to 72 Boeing widebody aircraft. Additionally, the airline has placed an order with Airbus for 60 A321neo aircraft, which includes both standard and long-range versions. Douglas affirmed that he expects to receive the first Airbus planes by the latter half of 2026.
Not content with two substantial orders already in progress, the airline is currently in the process of selecting an ultra-long-haul aircraft. A competitive selection is underway between the Boeing 777-9 and the Airbus A350-1000s.
The Three Pillars
Stepping back from the details of the launch, Douglas also discussed the overarching strategy, which he refers to as Riyadh Air’s three pillars. In summary, these are:
to serve as a leader in environmental sustainability to maintain a meticulous focus on guest experience and to operate as a digital-native airline
Rather than considering itself merely an airline, Douglas characterized the company as a “people business” or a “hospitality business” throughout the discussion.
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