Riyadh the new Dubai? Saudi Arabia launches new airline to compete among transit hubs

Saudi Arabian Crown Prince Mohammad bin Salman bin Abdulaziz announced the launch of a new national carrier, Riyadh Air on Sunday. The new national carrier will attempt to use Saudi Arabia's geographical position between the three continents of Asia, Africa, and Europe to its advantage, allowing Riyadh to develop into a global transit hub for international travel, trade, and tourism replacing the likes of Dubai and Doha in the region. By 2030, Riyadh Air hopes to establish connections with more than 100 locations worldwide. 

HRH Crown Prince announces #RiyadhAir, a new national carrier to further expand the Saudi aviation ecosystem locally and globally.

Read more: https://t.co/emlrIvbU8k pic.twitter.com/xvldmqW6GN

— Public Investment Fund (@PIF_en)

The airline will use Riyadh as its hub to usher in a new age for the tourism and aviation industries internationally, a statement from the airline read, "Riyadh Air will be a world-class airline, adopting the global best sustainability and safety standards across its advanced fleet of aircraft equipped with the latest cutting-edge technology."

The Saudi economy is majorly dependent on oil and energy. As per a report by DW, 80 per cent of Saudi's export income comes from oil and the oil industry makes up for nearly 40 per cent of its GDP. The airline is expected to create more than 200,000 direct and indirect jobs and boost non-oil GDP growth by USD $20 billion. The Public Investment Fund (PIF), a sovereign wealth fund, will hold all of the airlines.

Boeing bags an order for 121 Dreamliners from Saudi

This arrangement is a component of Saudi Arabia's larger strategic ambition to develop itself into a centre for international aviation. In its Vision 2030 document, Saudi Arabia articulated its aim to serve 330 million passengers and draw 100 million tourists. Saudi has marked off a massive deal with the American aircraft manufacturer, Boeing to deliver 121 787-9 Dreamliner. This will be Boeing's fifth-largest commercial order in history in terms of value. 

#RiyadhAir, #aPIFCompany, announces first fleet order of 72 Boeing 787-9 Dreamliner airplanes. pic.twitter.com/UOLrmqpjpK

— Public Investment Fund (@PIF_en)

The creation of Riyadh Air is consistent with PIF's mission to localise important sectoral capabilities and advance economic diversification in Saudi Arabia. The airline will also enable the National Tourism Strategy and assist the Saudi Aviation Strategy's bigger ambition, opening up Saudi Arabia's cultural and natural attractions to foreign tourists and generating new jobs.

The Saudi government is pursuing ambitious aviation goals as part of Crown Prince Mohammed bin Salman's all-encompassing "Vision 2030" reform drive, which includes doubling yearly traffic to 330 million passengers by the end of the decade. It also aims to move up to five million tonnes of goods annually.