PIF embraces the sky with Riyadh Air 
Crown Prince Mohammed bin Salman has announced the newly established national carrier Riyadh Air, a company wholly owned by the Public Investment Fund.
One of the main objectives of establishing the new airline is to leverage and capitalize on the Kingdom’s strategic geographic location, which connects three major continents: Asia, Africa and Europe.
This will enable Riyadh Air to become a major gateway to the world and a global destination for transportation, trade and tourism.
As a world-class airline, it will usher in a new era for the travel and aviation industry globally, adopting the best sustainability and safety standards across an advanced aircraft fleet equipped with cutting-edge technology.
Riyadh Air, once it becomes operative in 2024, will connect the Saudi capital to over 100 destinations globally and will provide tourists from around the world the opportunity to visit Saudi Arabia’s cultural and natural attractions.
Furthermore, it is expected to pump SR75 billion ($20 billion) into non-oil gross domestic product growth and create over 200,000 direct and indirect jobs.
The new airline will operate through a single hub from Riyadh and acquire modern homogenous aircraft models equipped with the latest technology. This will enhance operational efficiency and save on the costs associated with maintenance.
It is believed that establishing a new national carrier will not only enrich the air transport sector in the Kingdom but will usher in a new era for the travel and aviation industry globally and will further develop the aviation ecosystem in Saudi Arabia.
Finally, Riyadh Air will be attracting top-notch staff who are experienced in aviation, transportation and logistics, which will include Saudi and international expertise.
One might ask: Why is the PIF targeting the aviation sector while the Kingdom has an existing national carrier, Saudia airline, in operation for over 75 years, in addition to another local carrier?
The answer to this question is very simple: the aviation sector is one of the 13 main targeted economic and service sectors by PIF. Additionally, the operational business model of such airlines differs from Riyadh Air. For example, while Saudia operates through three hubs — Riyadh, Jeddah and Dammam — Riyadh Air will only operate via a single hub.
It is believed that establishing a new national carrier will not only enrich the air transport sector in the Kingdom but will usher in a new era for the travel and aviation industry globally and will further develop the aviation ecosystem in Saudi Arabia.
Also, it will introduce a new national air carrier into the Saudi aviation sector that will benefit from the PIF’s investment expertise and financial capabilities. Additionally, it will excel in the operations excellence of the 71 companies currently under the PIF’s management, along with the recently announced King Salman International Airport masterplan.
• Talat Zaki Hafiz is an economist and financial analyst. Twitter: @TalatHafiz
