A consortium led by Air Arabia Group has secured its Air Operator Certificate (AOC) from Saudi Arabia’s General Authority of Civil Aviation (GACA) and will commence flight operations for a new low-cost carrier based in Dammam on September 20, 2026.

Announced in a press release on September 15, 2026, the launch follows a competitive bidding process concluded in July 2025. The carrier operates with majority Saudi ownership through consortium partners Nesma Group and KUN Holding Company. The airline will base its operations at King Fahd International Airport (DMM), utilizing Airbus A320 aircraft to support the Kingdom’s National Transport and Logistics Strategy.

Initial route network and fleet strategy

GACA officially granted the AOC on September 14, 2026, clearing the regulatory path for revenue flights. Initial operations will focus entirely on domestic connectivity within Saudi Arabia. The carrier will operate two daily flights from Dammam to Riyadh, two daily flights to Jeddah, and one daily flight to Medinah.

Air Arabia Group Chief Executive Officer Adel Al Ali stated the launch marks a strategic milestone for the company and reflects a commitment to expanding affordable travel options across the country.

“Through our value-driven business model, we aim to enhance air connectivity across the Kingdom, particularly in the Eastern Province, by offering customers a wider choice of direct domestic and international destinations from King Fahd International Airport,” Al Ali said.

Strategic alignment with Vision 2030

The establishment of the Dammam-based carrier is a direct component of Saudi Arabia’s Vision 2030, which seeks to position the country as a global logistics and aviation hub. The consortium has outlined aggressive growth targets for the end of the decade. By 2030, the aircraft aims to serve 24 domestic and 57 international destinations, projecting an annual passenger volume of 10 million.

GACA Executive Vice President of Aviation Safety and Environmental Sustainability Captain Sulaiman bin Saleh Almuhaimedi noted the economic implications of the new operator. According to Almuhaimedi, the launch will enhance competition in the air transport market while supporting trade, tourism, and local employment in the Eastern Province.

AirPro News analysis

We view the launch of this Air Arabia-led consortium as a calculated step by GACA to decentralize Saudi Arabia’s aviation growth away from the primary hubs of Riyadh and Jeddah. By anchoring a new low-cost carrier at King Fahd International Airport, regulators are stimulating regional economic diversification in the Eastern Province. The consortium structure allows the Kingdom to leverage Air Arabia’s established low-cost operational expertise while satisfying domestic investment mandates through Nesma Group and KUN Holding Company. The target of 10 million annual passengers by 2030 is ambitious but aligns with the broader capacity expansion mandated by the National Transport and Logistics Strategy.

Sources: Air Arabia

IAG Cargo, MASkargo, and Qatar Airways Cargo have successfully completed their first trilateral customer shipment trial, moving 11 tonnes of copper foil from Malaysia to the United States across all three carriers’ networks. The shipment serves as a primary operational test of the integrated routing and handling systems required for the alliance.

Announced in a September 17, 2026, press release, the trial marks a critical milestone ahead of the planned late 2026 launch of the Global Cargo Joint Business. The cargo originated at Kuala Lumpur International Airport (KUL) and arrived at Chicago O’Hare International Airport (ORD), transiting through intermediate hubs in Doha (DOH) and Dublin (DUB).

Operational integration and network routing

The successful transport of the 11-tonne shipment required coordinated logistics across multiple global hubs. By routing the cargo through Doha and Dublin before its final transatlantic leg to Chicago, the Cargo-Aircraft carriers tested the seamless transfer of goods, data, and handling procedures between their respective operational systems.

Qatar Airways Cargo Chief Officer Cargo Mark Drusch stated the tripartite shipment showcased the operational alignment and connectivity that will underpin the joint venture. He noted the collaboration aims to build a global cargo offering with greater reach and routing flexibility for freight forwarders and direct customers.

MASkargo (MAB Kargo Sdn. Bhd.) Chief Executive Officer Mark Jason Thomas added that the shipment demonstrates the Partnerships potential to strengthen links between Asian production centers and global demand markets. The trial validates the technical and physical handoffs required to move industrial materials across three distinct airline networks.

Building the Global Cargo Joint Business

First announced in 2025, the Global Cargo Joint Business is designed to eventually provide customers access to over 400 destinations across six continents. The alliance requires deep integration of ground handling and terminal operations at key strategic hubs to function effectively.

The carriers have spent the past year aligning their physical infrastructure. In 2025, MASkargo introduced handling operations at London Heathrow Airport (LHR). Earlier in 2026, IAG Cargo was appointed as the ground handling agent for Qatar Airways Cargo in Dublin and at Adolfo Suárez Madrid–Barajas Airport (MAD), securing the European transfer points for the network.

IAG Cargo Chief Executive Officer David Shepherd emphasized the ongoing work to align operations, systems, and expertise across the three companies.

Completing our first trilateral customer shipment is a significant milestone as we continue preparations for the launch of the Global Cargo Joint Business, which will redefine international air cargo.

AirPro News analysis

The successful execution of a trilateral shipment involving three major international carriers highlights the complex logistical choreography required to launch a unified global cargo network. We view the strategic placement of ground handling agreements, such as IAG Cargo managing Qatar Airways Cargo operations in Dublin and Madrid, as the foundational infrastructure making this joint business viable. If the late 2026 launch proceeds as planned, the combined network of over 400 destinations will position this alliance as a formidable competitor in the global air freight market, particularly for high-value manufacturing exports moving from Asia to North America.

Sources: IAG Cargo

Aeroflot Group has finalized a firm order for 90 Yakovlev MC-21-310 narrowbody aircraft, securing a long-term fleet renewal strategy as international sanctions restrict access to Western-built airframes.

The agreement, signed on September 18, 2026, by subsidiaries of Rostec State Corporation and Aeroflot, includes a 22-year comprehensive technical support package. According to a press release from the Official Website of the President of Russia, the contract covers post-sale maintenance for 108 aircraft in total, encompassing the 90 newly ordered airframes and 18 previously contracted units. Russian President Vladimir Putin oversaw the signing ceremony via videoconference from The Kremlin, alongside an in-person event at Sheremetyevo International Airport (SVO).

Delivery Schedule and Production Targets

Deliveries of the 90 newly ordered MC-21-310 aircraft are scheduled to occur between 2029 and 2032. Reporting by Interfax indicates a phased delivery schedule: 14 aircraft in 2029, 18 in 2030, 24 in 2031, and 34 in 2032.

Prior to this batch, Aeroflot is slated to receive its first 18 previously contracted MC-21 aircraft starting in 2027. The gap between the initial 2027 deliveries and the 2029 start of the larger order highlights the transition period required for United Aircraft Corporation (UAC) to scale up serial production of fully domestic components.

Rostec CEO Sergei Chemezov emphasized the industrial impact of the agreement, telling Interfax that the contract secures a clear production workload and establishes the foundation for a systematic ramp-up of serial manufacturing.

During the ceremony, President Putin noted the broader economic implications, stating that the long-term contract will fill the order books of domestic aircraft manufacturers, suppliers, and contractors.

Infrastructure Modernization and Domestic Connectivity

To support the integration of the new domestic fleet, the Russian government presented several newly completed aviation infrastructure projects during the September 18 event. The Kremlin reported that 20 runways and 26 airport terminal complexes have been commissioned across Russia since 2021.

Officials unveiled new passenger terminals at Barnaul Airport, Orenburg Airport, and Pskov Airport. Additional infrastructure upgrades included a new runway and air traffic control tower at Makhachkala Airport, alongside an upgraded air border crossing point at Yuzhno-Sakhalinsk Airport.

The government outlined a target to modernize a minimum of 75 Russian airports by 2030. To maintain strategic air routes during this infrastructure and fleet transition, the federal budget allocated 50 billion rubles over the current and previous year for route subsidies.

Fleet Transition Strategy

The MC-21-310 serves as Russia’s primary domestic alternative to Western narrowbody aircraft. The comprehensive technical support agreement, involving UAC and United Engine Corporation (UEC), mandates that maintenance and component replacement remain entirely within the domestic aerospace ecosystem for the 22-year duration of the contract.

AirPro News analysis

We view this 90-aircraft order as a definitive indicator of Russia’s timeline for achieving aerospace autarky. While the firm order provides UAC with a guaranteed backlog, the delayed delivery window of 2029 to 2032 for the bulk of the fleet underscores the engineering and supply chain hurdles involved in substituting Western avionics, engines, and composite materials. The operational success of the MC-21 program will depend heavily on UEC’s ability to reliably produce and support the domestic PD-14 engines at scale, a capability that remains untested over a multi-decade commercial lifecycle.

Sources: Official Website of the President of Russia