Airlines Strategy
Riyadh Air Connects Saudi Arabia to All EU Capitals by 2030
Saudi Arabia’s Riyadh Air plans EU-wide connectivity by 2030 using advanced fleets, supporting Vision 2030 economic goals and tourism growth.
Riyadh Air, Saudi Arabia’s newly launched national airline, is charting a bold course to reshape global aviation by linking the Kingdom to every European Union capital within five years. This initiative is a cornerstone of Saudi Arabia’s Vision 2030, a sweeping national strategy aimed at diversifying the economy and reducing its dependency on oil revenues. With operations set to begin in late 2025, Riyadh Air has already made significant strides in fleet acquisition, route planning, and strategic partnerships.
Backed by the Public Investment Fund (PIF), the airline is not merely a commercial venture, it is a state-led instrument designed to boost tourism, create jobs, and position Riyadh as a global aviation hub. With an initial fleet of Boeing 787 Dreamliners and future additions including Airbus A350s and A321neos, Riyadh Air plans to serve over 100 destinations by 2030. The focus on European capitals is a calculated move to tap into established travel demand and support Saudi Arabia’s goal of welcoming 150 million annual visitors by the end of the decade.
Vision 2030 is Saudi Arabia’s comprehensive plan to transform its economy and society. Aviation plays a crucial role in this vision, with Riyadh Air acting as a catalyst for broader economic development. The Kingdom aims to triple its annual air passenger traffic to 330 million by 2030, and Riyadh Air is expected to play a central role in achieving this target.
Established in March 2023, Riyadh Air operates alongside Saudia, the Kingdom’s existing flag carrier, under a dual-hub strategy. Its base at King Khalid International Airport in Riyadh is being developed into a major international gateway. The airline is projected to contribute $20 billion to the non-oil GDP and create over 200,000 jobs across aviation, tourism, and related sectors.
CEO Tony Douglas, formerly of Etihad Airways, has positioned Riyadh Air as a future rival to Emirates and Qatar Airways. His leadership emphasizes efficiency, innovation, and cultural authenticity, aligning the airline’s growth with national development goals.
Saudi Arabia’s geographic location offers a natural advantage for connecting Asia, Europe, and Africa. Riyadh is within a 4–6 hour flight radius of most European capitals, making it a strategic hub for both passenger and cargo traffic. This centrality is being leveraged to optimize flight times and reduce operational costs.
The airline’s phased expansion strategy prioritizes high-demand routes, also known as “thick routes,” to ensure maximum load factors and profitability. By focusing initially on European destinations, Riyadh Air is entering a mature market with well-established demand while building the foundation for future long-haul services to Asia and North America.
Riyadh Air’s entry into Europe is also symbolic of Saudi Arabia’s broader engagement with global markets. It reflects a shift in the Kingdom’s international posture, one that emphasizes connectivity, tourism, and economic openness. “Riyadh Air will be the Kingdom’s answer to Emirates and Qatar Airways, but with a distinct Saudi identity.” — Tony Douglas, CEO
Riyadh Air’s fleet strategy is among the most ambitious in the aviation industry. The airline has placed firm orders for 72 Boeing 787-9 Dreamliners, 60 Airbus A321neos, and 25 Airbus A350-1000s. Additional options exist for 33 more Boeing aircraft and 25 more A350s, ensuring scalability as demand grows.
The first Boeing 787-9 was delivered in early 2025, and the airline plans to receive one aircraft per month throughout 2026. This delivery schedule supports the goal of adding two new destinations per month. The A350-1000s, ordered in June 2025, are intended for ultra-long-haul routes, including potential non-stop services to North America and Australia.
To finance this massive fleet acquisition, Riyadh Air secured a $1.3 billion credit facility in late 2024. The funding, led by Emirates NBD and several Saudi banks, underscores strong financial backing and investor confidence in the airline’s business model.
Riyadh Air is designed as a digital-native airline. Its proprietary technology platform integrates biometric check-in, AI-powered customer service, and real-time sustainability tracking. This infrastructure is intended to provide a seamless passenger experience from booking to arrival.
Cabin design also reflects Saudi cultural elements, with lavender-themed interiors and traditional motifs. The Boeing 787-9s feature a two-class configuration with wider seats and advanced in-flight entertainment systems. These features are aimed at differentiating Riyadh Air from other Gulf carriers.
Operational efficiency is enhanced through a model where international flights are paired with domestic “turns.” For example, a Riyadh-Paris flight may be followed by a Riyadh-Jeddah leg before the aircraft returns to Europe. This model maximizes aircraft utilization while supporting domestic connectivity.
Riyadh Air’s European expansion will occur in three phases. The first phase begins in late 2025 with two initial destinations, likely major hubs such as London and Paris. These routes will operate 4–5 times per week using Boeing 787-9s.
The second phase (2027–2028) will target 15–20 additional capitals, focusing on Western and Southern Europe. The final phase (2029–2030) aims to complete coverage of all remaining EU capitals, including those in Eastern Europe. The goal is to establish a comprehensive network by the end of the decade. To support this expansion, Riyadh Air has signed strategic agreements with carriers like Air France-KLM, Singapore Airlines, and EgyptAir. These partnerships enable codeshare and interline services, allowing the airline to offer broader connectivity even before its own fleet reaches full capacity.
Europe’s aviation market is both lucrative and competitive. According to ACI Europe, international passenger traffic grew by 5.7% in Q1 2025, highlighting strong recovery and demand. However, major airports like Heathrow and Schiphol face slot constraints, posing challenges for new entrants.
Riyadh Air plans to differentiate itself through pricing, service quality, and cultural branding. Initial fares are expected to be 10–15% lower than those of Gulf competitors, with premium cabins offering better seat dimensions at comparable prices. The airline’s cultural focus, emphasizing Saudi hospitality, adds a unique value proposition.
CEO Tony Douglas has stated that Riyadh Air aims to capture 12–15% of Gulf-Europe traffic by 2030. This would translate to approximately 8 million annual passengers, a significant share for a new entrant.
Riyadh Air’s plan to connect Saudi Arabia to every EU capital by 2030 is more than an aviation milestone, it’s a strategic move aligned with national transformation goals. The airline’s phased approach, robust fleet strategy, and strong financial backing position it for success in a complex and competitive market.
As Riyadh Air prepares to launch operations in late 2025, its progress will be closely watched by the global aviation community. If successful, the airline could redefine Gulf aviation dynamics and establish Saudi Arabia as a new epicenter of international air travel.
When will Riyadh Air begin operations? Which aircraft will Riyadh Air use? What is the goal of Riyadh Air’s European expansion? Who owns Riyadh Air? What role does Riyadh Air play in Vision 2030?
Riyadh Air’s Ambitious Plan to Connect Saudi Arabia with Every EU Capital by 2030
Strategic Foundations: Vision 2030 and Aviation Reform
Geopolitical and Geographic Advantages
Fleet and Infrastructure Development
Technology and Passenger Experience
European Network Rollout
Market Entry and Competitive Dynamics
Conclusion
FAQ
Riyadh Air is scheduled to commence commercial operations in late 2025.
The airline will operate Boeing 787-9 Dreamliners, Airbus A321neos, and Airbus A350-1000s.
Riyadh Air aims to connect Saudi Arabia to every capital city in the European Union by 2030.
Riyadh Air is owned by the Public Investment Fund (PIF) of Saudi Arabia.
The airline supports Vision 2030 by boosting tourism, creating jobs, and enhancing global connectivity.
Sources
Photo Credit: Riyadh Air
Airlines Strategy
ITA Airways to Join Lufthansa Group Miles & More Loyalty Program in 2026
ITA Airways will adopt the Lufthansa Group’s Miles & More loyalty program starting April 2026, expanding benefits for frequent flyers.
This article is based on an official press release from Lufthansa Group.
Starting April 1, 2026, ITA Airways will officially adopt Miles & More as its loyalty program, marking a significant step in the Italian carrier’s integration into the Lufthansa Group. According to a recent press release from the company, the transition will open up a vast network of global partners and exclusive rewards for ITA Airways passengers.
The move allows ITA Airways customers to join Europe’s leading frequent flyer program, which currently boasts 39 million members. By registering through the Airlines online portal or mobile app, passengers will immediately gain access to benefits across 35 airline partners and more than 135 additional program partners worldwide.
The integration into Miles & More provides ITA Airways passengers with extensive opportunities to earn and redeem miles. As detailed in the Lufthansa Group announcement, members can accumulate miles on flights operated by all Lufthansa Group airlines, Star Alliance carriers, and other partner airlines. These miles can then be redeemed for award flights, travel upgrades, and various products and services.
To accommodate existing loyal customers, the company stated that an attractive status match offer will be published for ITA Airways passengers who already hold frequent flyer status. Furthermore, new members will be able to earn “Points” to achieve or maintain their status within the Lufthansa Group ecosystem. The Partnerships is expected to expand with additional offers throughout the year.
The adoption of Miles & More is described as a major milestone in the ongoing integration of ITA Airways into the Lufthansa Group as a hub airline. The transition not only enhances the customer experience but also strengthens the loyalty program’s market position.
“Welcoming ITA Airways to the Miles & More program is a unique milestone, not only from a program offer perspective but also from the airline’s customers perspective. With this step, we continue to be on track integrating ITA Airways as Hub Airline.”
According to Dieter Vranckx, Chief Commercial Officer of Lufthansa Group, the strategic decision allows ITA Airways to leverage a globally anchored loyalty program, further integrating the Italian carrier into the group’s commercial powerhouse.
We note that the transition of ITA Airways to the Miles & More program is a logical progression following Lufthansa Group’s integration efforts. By aligning loyalty programs, the group can streamline operations, offer unified benefits to a broader customer base, and incentivize cross-booking among its subsidiary airlines. The promised status match will be a crucial element in retaining ITA Airways’ most valuable frequent flyers during this transition period. According to the Lufthansa Group press release, ITA Airways will officially adopt the Miles & More loyalty program starting April 1, 2026.
No. The company has announced that an attractive status match offer will be made available for ITA Airways customers who already possess frequent flyer status.
Members can earn miles on all Lufthansa Group airlines, Star Alliance airlines, and other partner airlines. Miles can be redeemed for award flights, travel-related awards, and products from over 135 non-airline partners.
Expanding Benefits for Frequent Flyers
Status Match and Earning Points
Strategic Integration and Synergies
AirPro News analysis
Frequently Asked Questions
When does ITA Airways join Miles & More?
Will existing ITA Airways frequent flyers lose their status?
Where can members earn and redeem miles?
Sources
Photo Credit: Lufthansa
Airlines Strategy
Volaris and Viva Aerobus Shareholders Approve Merger Forming Grupo Más Vuelos
Volaris and Viva Aerobus shareholders approve a 50/50 merger to form Grupo Más Vuelos, controlling over 70% of Mexico’s domestic air travel, pending regulatory approvals.
This article summarizes reporting by Yahoo Noticias and an independent industry research report. The original report is restricted or paywalled; this article summarizes publicly available elements and public remarks.
In a landmark decision for Latin American aviation, shareholders of Mexican ultra-low-cost carrier Volaris overwhelmingly approved a merger with rival Viva Aerobus on March 25, 2026. According to an independent industry research report, the transaction will forge a new holding company named “Grupo Más Vuelos,” effectively consolidating the Mexican domestic aviation market.
The mergers of equals, initially announced in December 2025, is poised to create the country’s largest airline group. Based on industry estimates cited in the research report, the combined entity will control between 70% and 75% of Mexico’s domestic departing seats, decisively overtaking legacy carrier Aeromexico.
While the shareholder vote represents a critical milestone, the formation of Grupo Más Vuelos remains subject to stringent regulatory approvals. We note that the deal will serve as a defining test for Mexico’s newly established antitrust watchdog, the Comisión Nacional Antimonopolio (CNA).
The Extraordinary General Shareholders’ Meeting held on March 25, 2026, demonstrated near-unanimous support for the consolidation. According to the provided research report, the assembly achieved a 93.7% quorum, with 91.8% of the outstanding capital stock voting in favor and zero votes against.
To execute the 50/50 merger, Volaris will act as the surviving entity at the holding level. The research data indicates that Volaris will issue exactly 1,078,528,426 new shares to Viva shareholders. Upon closing, both shareholder groups will own an equal 50% stake in Grupo Más Vuelos on a fully diluted basis. The new holding group’s shares will continue trading on the Mexican Stock Exchange (BMV) and the New York Stock Exchange (NYSE).
Despite the corporate integration, the airlines will not immediately merge their consumer-facing operations. The research report confirms a dual-brand strategy, meaning Volaris and Viva Aerobus will retain their independent brands, operating certificates, and day-to-day operations.
Governance of the new holding company will be evenly split. A 12-member board of directors will feature six nominees from Volaris and six from Viva. Leadership roles have also been distributed: Roberto Alcántara Rojas, Viva’s current Chairman, will chair the combined group. Meanwhile, Enrique Beltranena and Juan Carlos Zuazua will remain CEOs of Volaris and Viva, respectively. The scale of Grupo Más Vuelos will fundamentally alter the North-America aviation landscape. The research report notes that Volaris and Viva currently transport approximately seven out of every ten domestic passengers in Mexico.
The combined fleet will exceed 208 Commercial-Aircraft. According to the sourced data, Volaris brings 117 aircraft with an average age of 7.2 years, while Viva contributes 91 aircraft averaging 8.8 years. Executives from both airlines have publicly stated that the merger’s primary goal is to generate economies of scale, lower aircraft ownership costs, and maintain their ultra-low-cost models to offer affordable fares across the Americas.
The consolidation arrives after a turbulent period for the global aviation industry. Throughout 2024 and 2025, both Mexican carriers faced severe supply-chain disruptions. The research report highlights that the Pratt & Whitney engine recalls forced both airlines to ground significant portions of their fleets, driving up operating costs. By merging, the carriers aim to navigate these ongoing supply chain crises jointly rather than competing against one another.
Finalizing the merger could take up to a year, as noted by Volaris CEO Enrique Beltranena in the research report. The most formidable obstacle is clearing Mexico’s Comisión Nacional Antimonopolio (CNA), a federal agency established in July 2025 following constitutional reforms.
Industry analysts cited in the report view this transaction as the CNA’s first major test of institutional independence and technical rigor, given the unprecedented market concentration. Furthermore, the deal requires antitrust and foreign-investment clearances from the United States under the HSR Act, Colombia’s civil aviation authority (Aerocivil), and the Mexican Banking and Securities Commission (CNBV).
The merger has garnered high-level political support. In December 2025, Mexican President Claudia Sheinbaum publicly backed the deal.
President Sheinbaum publicly expressed optimism about the deal, referring to it as a “special alliance” rather than a monopolistic merger.
, Independent Industry Research Report
According to the research report, Sheinbaum expressed optimism that the consolidation would attract significant investment, enable fleet expansion, and boost tourism, though she acknowledged that the CNA holds the final regulatory authority. The creation of Grupo Más Vuelos presents a complex scenario for Mexican aviation. While the airlines promise that economies of scale will result in lower fares, a 70% to 75% market share severely limits domestic competition. We anticipate that consumer advocacy groups will closely monitor pricing trends on trunk routes where Volaris and Viva previously engaged in fierce fare wars.
Additionally, this mega-merger forces Aeromexico into a distant second place in the domestic market. Aeromexico will likely need to pivot its strategy, potentially doubling down on premium international traffic and its SkyTeam alliance partnerships, as competing on volume and price against a unified Volaris-Viva entity will be increasingly difficult.
What is Grupo Más Vuelos? Will Volaris and Viva Aerobus become one airline? When will the merger be completed? Who will lead the new company? Sources: Yahoo Noticias, Independent Industry Research Report
Corporate Structure and Financial Mechanics
Shareholder Vote and Equity Split
Leadership and Dual-Brand Strategy
Market Impact and Fleet Consolidation
Dominating the Domestic Market
Overcoming Supply Chain Headwinds
Regulatory Hurdles and Political Climate
The CNA’s First Major Test
Presidential Backing
AirPro News analysis
FAQ: Grupo Más Vuelos Merger
It is the proposed new holding company resulting from the 50/50 merger of equals between Mexican ultra-low-cost carriers Volaris and Viva Aerobus.
No. According to the research report, both airlines will operate under a dual-brand strategy, maintaining their independent brands, operating certificates, and day-to-day operations.
The timeline depends on regulatory approvals. Volaris CEO Enrique Beltranena has indicated the process could take up to a year from the shareholder approval in March 2026.
Roberto Alcántara Rojas will serve as Chairman of the 12-member board. Enrique Beltranena and Juan Carlos Zuazua will continue as CEOs of Volaris and Viva, respectively.
Photo Credit: Montage
Airlines Strategy
IAG Likely Abandons TAP Air Portugal Bid Over Ownership Limits
IAG is reportedly pulling back from TAP Air Portugal acquisition due to Portugal’s 49.9% stake limit and strict privatization terms.
This article summarizes reporting by Reuters and Bloomberg News.
International Airlines Group (IAG) is reportedly stepping back from its potential acquisition of state-owned TAP Air Portugal. According to reporting by Bloomberg News and summarized by Reuters, the parent company of British Airways, Iberia, Vueling, and Aer Lingus is leaning against submitting a serious bid due to the Portuguese government’s strict privatization terms.
The core of the disagreement centers on ownership limits. Lisbon is offering a maximum 49.9 percent stake in the national carrier, a structure that fundamentally clashes with IAG’s strategic requirement for majority control.
With a deadline for non-binding offers set for April 2, 2026, IAG’s potential withdrawal would reshape the European aviation consolidation landscape. This development leaves Lufthansa Group and Air France-KLM as the primary contenders for TAP’s highly coveted South Atlantic route network.
TAP Air Portugal was fully nationalized during the COVID-19 pandemic after receiving billions in state aid. To reduce the state’s financial burden and integrate the airline into a global alliance, the government relaunched the long-delayed privatization process in July 2025. By January 2026, formal invitations for non-binding offers were extended to IAG, Lufthansa, and Air France-KLM.
IAG officially expressed interest in TAP in November 2025. However, the parameters set by Prime Minister LuÃs Montenegro’s administration have proven difficult for the airline conglomerate to accept.
The Portuguese government intends to sell no more than 49.9 percent of TAP, reserving 5 percent of that portion for airline employees. This cap directly contradicts IAG’s established merger and Acquisitions strategy. As noted in public remarks cited by the research report, IAG Chief Financial Officer Nicholas Cadbury has been clear about the company’s baseline requirements for acquisitions:
“…clear path to full or majority ownership.”
Beyond ownership limits, Lisbon has attached stringent conditions to the sale to protect national interests. According to the provided research report, these include maintaining TAP’s strategic hub in Lisbon and protecting routes deemed vital to the Portuguese economy. Furthermore, Prime Minister Montenegro has publicly stated that ensuring operational growth across Portugal’s regional Airports, such as Porto’s Francisco Sá Carneiro airport, Faro, and Madeira, is a mandatory condition. He described this regional growth guarantee as a “non-negotiable requirement” for the privatization.
Despite the fundamental misalignment on terms, aviation analysts suggest IAG may not completely walk away before the April 2 deadline.
Industry insiders note that IAG could still submit a non-binding offer. This tactical move would allow the group to access TAP’s confidential data rooms. Additionally, maintaining a presence in the bidding process could force rivals Lufthansa and Air France-KLM to pay a higher premium for the Portuguese carrier.
If IAG officially bows out, the battle for TAP will become a direct duel between Lufthansa and Air France-KLM. TAP is highly valued for its lucrative network connecting Europe to Brazil, Africa, and North America. A successful acquisition by either remaining competitor would significantly alter market dominance on South Atlantic routes.
IAG’s hesitation regarding TAP Air Portugal must be viewed through the lens of its recent regulatory struggles. In mid-2024, the group was forced to abandon its attempt to fully acquire Spanish carrier Air Europa due to insurmountable antitrust opposition from European Union Regulations.
Having been burned by the Air Europa experience, we assess that IAG appears highly cautious about entering another complex, heavily conditioned transaction, especially one where it would be relegated to a minority shareholder role. The group generally avoids minority stakes, making the Portuguese government’s 49.9 percent cap a likely dealbreaker from the start. A pivot toward integrating existing assets rather than chasing heavily conditioned minority stakes seems to be the current operational priority for the conglomerate.
Interested parties have until April 2, 2026, to submit non-binding offers to the Portuguese government.
IAG requires a path to majority ownership, but Portugal is only selling a maximum 49.9 percent stake. Additionally, the government is imposing strict conditions on regional airport growth and route protections. With IAG likely stepping back, Lufthansa Group and Air France-KLM are the primary remaining competitors in the privatization process.
Sources:
The Clash Over Ownership and Conditions
Minority Stake Limitations
Non-Negotiable Strategic Demands
Tactical Bidding and Industry Implications
The “Phantom Bid” Strategy
Shifting Power Dynamics in European Aviation
AirPro News analysis
Frequently Asked Questions
When is the deadline to bid for TAP Air Portugal?
Why is IAG reportedly abandoning its bid?
Who are the remaining bidders for TAP?
Photo Credit: TAP Air Portugal
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