Commercial Aviation
Air Arabia-Led Consortium Launches New Low-Cost Carrier in Saudi Arabia
A new low-cost airline based in Dammam by Air Arabia-led consortium targets 10M passengers by 2030, boosting Saudi aviation and Vision 2030 goals.
Saudi Arabia’s aviation industry continues to evolve at an accelerated pace, aligning with the country’s long-term economic development framework known as Vision 2030. One of the most prominent recent developments is the announcement of a new low-cost carrier (LCC) to be based in Dammam and spearheaded by a consortium comprising Air Arabia, Nesma Group, and KUN Holding. This move reflects increasing investment momentum across the Kingdom’s transportation and tourism infrastructure and adds to a growing list of aviation undertakings aimed at increasing regional connectivity and passenger handling capacity.
The General Authority of Civil Aviation (GACA), the central regulator for Saudi civil aviation, has awarded this consortium the right to establish a new national low-cost airline, marking a significant expansion of the country’s airline portfolio. Currently dominated by players such as flynas and flyadeal, the LCC market is expected to benefit from this addition, particularly as it adds presence in the historically underserved Eastern Province. King Fahd International Airports (DMM) in Dammam will serve as the new airline’s base of operations.
This development is emblematic not only of the Kingdom’s increasing liberalization of its aviation sector but also of Saudi Arabia’s broader goal of becoming a leading regional and global aviation hub. The introduction of a Dammam-based LCC supports Saudi Arabia’s Vision 2030 objectives, including increasing the number of annual air travelers to 330 million by the end of the decade.
The new LCC initiative is driven by a tri-partite consortium. Leading the collaboration is Air Arabia, the largest and first low-cost carrier in the Middle East, headquartered in Sharjah, United Arab Emirates. Air Arabia brings seasoned expertise in budget airline operations with established joint ventures in Morocco, Egypt, and Pakistan. Joining it are Saudi Arabia’s Nesma Group, with operations ranging from aviation to logistics, and KUN Holding, a domestic investment entity with a focus on the tourism and infrastructure sectors.
According to official statements, each partner will bring complementary capabilities to the new venture. Air Arabia will contribute its longstanding operational low-cost model and fleet management experience. Nesma provides local insight and logistical support precipitated by its aviation background through Nesma Airlines, while KUN Holding supplies capital and alignment with regional economic development initiatives.
The company will operate under the “Air Arabia Alliance” brand, representing both continuity with Air Arabia’s platform-based model and an evolution toward deeper market localization in Saudi Arabia.
“This achievement represents a key milestone that reaffirms our commitment to supporting the growth and development of the Kingdom’s aviation sector.” , Adel Al Ali, Group CEO, Air Arabia
The new carrier will be based at King Fahd International Airport in Dammam (DMM), strategically enhancing air travel in a region historically overlooked by aviation development. The consortium’s plan aims to operate 45 Airbus A320-family aircraft by 2030, with services extending across 81 cities, 24 domestic and 57 international destinations. This scope is designed to capitalize both on domestic demand and international tourism objectives under Vision 2030.
The airline targets transporting 10 million annual passengers by 2030, positioning it as a direct participant in Saudi Arabia’s effort to elevate its air travel volume from 111 million passengers in 2022 to 330 million by 2030. Employment generation is another cornerstone objective, with the company projecting the creation of over 2,400 direct aviation-sector jobs, further contributing to regional economic activation. The Eastern Province, while home to significant parts of Saudi Arabia’s industrial output and nearly 50% of its GDP, has lacked a flagship airline, a gap the consortium explicitly aims to fill. By boosting accessibility to and from Dammam, the LCC is expected to stimulate both inbound tourism and internal business travel.
The carrier’s fleet is expected to mirror Air Arabia’s existing configurations, dominated by Airbus A320-family aircraft. This uniformity allows for streamlined training, operational simplicity, and maintenance efficiency. Air Arabia currently operates more than 80 aircraft and has orders for an additional 120 A320neos, providing reservoir capacity for the Saudi operation’s launch trajectory.
The rollout of actual services will be phased. Preliminary operations are targeting launch in 2026, with gradual scaling leading to projected full deployment by 2030. This timeline aligns with procurement cycles, regulatory certifications, and route network negotiations.
Additionally, plans are in place for innovation in customer experience, digital bookings, and cost-effective services, modeled after Air Arabia’s existing approach that emphasizes no-frills, affordable regional connectivity.
This new airline venture plays a direct role in supporting the Kingdom’s national transformation agenda. Vision 2030 highlights tourism as one of the central non-oil sectors set for expansion. With major projects such as NEOM, Red Sea Global, and Amaala under development, the need for diversified and economical air travel options becomes imperative.
Dammam’s strategic location near Bahrain, Qatar, and the UAE grants it regional accessibility. This geographic advantage reinforces the logic of making it a regional transport hub. The airport itself handled over 12.6 million passengers in 2024, and this addition may well push those numbers upward, contributing to regional tourism flows toward destinations within Saudi Arabia.
Such connectivity also improves accessibility for Umrah pilgrims, business travelers, and visiting expatriates, all of whom contribute to the Kingdom’s growing service economy. Tourism targets aim to welcome over 150 million visitors annually by decade’s end, and cost-efficient air services are essential in facilitating that growth.
Existing low-cost carriers in the Kingdom include flynas and flyadeal. Flynas, launched in 2007, operates a growing fleet of 61 aircraft with ambitions to expand to 250. Flyadeal, founded in 2017 as a Saudia subsidiary, operates 42 aircraft. Collectively, these LCCs dominate 29% of Saudi Arabia’s seat capacity, comparable but slightly below emerging markets like Southeast Asia. The latest entrant is unlikely to substantially displace these incumbents but will instead aid in growing the overall market. As GACA’s EVP Mohammed Alkhuraisi noted, the objective is not saturation but strategic growth driven by structured licensing and airport availability. This approach leverages increasing demand trends while avoiding excess supply that could undercut fare revenues.
Furthermore, the new airline will inherit tried-and-tested LCC methodologies from Air Arabia’s other ventures, giving it an operational resilience that may shorten ramp-up timelines compared to newer startups.
As aviation growth accelerates, environmental considerations inevitably take precedence. Saudi Arabia aims to achieve net-zero emissions by 2060, and its Civil Aviation Environmental Sustainability Program (CAESP) outlines feasible targets. While low-cost carriers are generally more carbon-efficient per seat, fleet expansion still leads to absolute emissions growth without offset technologies or alternative fuels.
SAF adoption is considered one pathway, though costs remain prohibitively high, estimated to be over four times the cost of conventional jet fuel in 2025. Investment in more fuel-efficient aircraft, incentivization schemes, and carbon market alignment offer partial mitigation solutions. Details from the new consortium on sustainability strategies remain minimal but are expected in later operational disclosures.
Balancing rapid passenger growth, economic opportunity, and environmental responsibility will be crucial to ensure long-term compatibility with Saudi Arabia’s national and international climate commitments.
The establishment of a new low-cost airline headed by Air Arabia, Nesma Group, and KUN Holding represents a calculated and strategic move to further liberalize and expand the Saudi aviation sector. As it sets base in Dammam, this initiative reflects not only strong commercial fundamentals but also an alignment with regional development goals, economic diversification mandates, and global connectivity ambitions.
Looking ahead, the airline’s success will hinge on execution, operational scalability, and its ability to carve out a distinctive identity amidst an increasingly competitive landscape. With deep regional experience and a clear mandate, the project enters the aviation ecosystem at a defining moment, bridging strategic necessity with market opportunity.
What is the name of the new airline? When will the airline begin operations? What aircraft will the new LCC operate? Where is the airline based? How will this airline affect the local economy?
New Low-Cost Carrier in Saudi Arabia: Strategic Launch by Airlines-Led Consortium
Consortium Structure and Strategic Objectives
Composition of the Consortium
Operational Parameters and Market Reach
Fleet, Technology, and Expected Timeline
Impact and Broader Implications
Supporting Vision 2030 and Regional Tourism
Competitive Dynamics and Market Maturity
Sustainability Considerations and Future Challenges
Conclusion
FAQ
The name is expected to reflect the “Air Arabia Alliance” brand, although a final brand name has yet to be publicly confirmed.
The airline is targeting a phased launch starting in 2026, with full operational scale-up anticipated by 2030.
The airline is expected to operate Airbus A320-family aircraft, similar to those used in Air Arabia’s existing fleets.
The airline will be based at King Fahd International Airport (DMM) in Dammam, Eastern Province, Saudi Arabia.
It is projected to create over 2,400 direct jobs and significantly enhance tourism and connectivity in Eastern Saudi Arabia.
Sources
Photo Credit: Gulf Business
Aircraft Orders & Deliveries
EgyptAir Receives First Airbus A350-900 to Modernize Fleet
EgyptAir accepts its first Airbus A350-900, starting a fleet overhaul with 16 aircraft to expand long-haul routes and improve efficiency.
This article is based on an official press release from Airbus and additional fleet data.
EgyptAir has officially taken delivery of its first Airbus A350-900, registered as SU-GGE, marking a significant milestone in the carrier’s modernization strategy. The handover, which took place on February 9, 2026, positions the Cairo-based airline as the first operator of the A350-900 in North Africa.
According to an official press release from Airbus, this aircraft is the first of 16 A350-900s ordered by the Egyptian flag carrier. The delivery underscores EgyptAir’s commitment to phasing out older wide-body jets while expanding its long-haul network capabilities to new destinations in North America and Asia.
The arrival of the A350-900 represents a pivotal shift in EgyptAir’s long-haul operations. The airline originally signed for 10 aircraft during the Dubai Airshow in November 2023, later expanding the commitment with a top-up order for six additional units. These new airframes are intended to replace the carrier’s aging Boeing 777-300ER fleet, offering improved operating economics and passenger comfort.
In a statement regarding the initial order, Yehia Zakaria, EgyptAir Holding Chairman and CEO, highlighted the flagship status of the new type:
“The A350-900 will be our flagship aircraft… adding the world’s most modern and efficient widebody aircraft to our fleet will be instrumental in expanding our offering.”
Christian Scherer, Chief Commercial Officer at Airbus, noted the economic advantages the aircraft brings to the airline’s network:
“The A350 is the one and only aircraft enabling EgyptAir to open up its network with benchmark economic efficiency, not to mention passenger comfort.”
EgyptAir has outlined a phased entry-into-service plan for the new fleet. Initially, the aircraft will be deployed on trunk routes to London and Paris to facilitate crew familiarization. Following this integration period, the airline plans to leverage the A350’s 9,700 nautical mile range to launch non-stop services to the U.S. West Coast and key Asian markets, including Shanghai, Beijing, and Tokyo.
The new A350-900 features a two-class configuration designed to maximize capacity while introducing updated premium amenities. According to fleet data, the aircraft accommodates a total of 340 passengers. Technological upgrades are a focal point of the new cabin. The aircraft is equipped with Panasonic Avionics’ Astrova in-flight entertainment system, providing 4K OLED screens and high-fidelity audio. Additionally, passengers across all classes will have access to USB-C fast charging ports and high-speed Wi-Fi connectivity.
The transition to the A350-900 aligns with broader industry sustainability goals. Powered by two Rolls-Royce Trent XWB engines, the aircraft is reported to burn 25% less fuel compared to the previous generation aircraft it replaces. This efficiency gain corresponds to a 25% reduction in CO2 emissions.
Furthermore, the A350 is recognized as the quietest aircraft in its class, possessing a noise footprint 50% smaller than older jets, a critical factor for operations at noise-sensitive airports in Europe and North America.
EgyptAir’s delivery secures its position as the sole active operator of the A350-900 in the North African region, a status solidified by the shifting strategies of its neighbors. While other carriers in the region had previously expressed interest in the type, market dynamics have led to cancellations and delays.
For instance, Air Algérie cancelled its order for A350-1000s in early 2025, opting instead for Airbus A330-900neos. Similarly, Tunisair cancelled its A350 commitments in 2013. Other regional orders, such as those from Libyan carriers Afriqiyah Airways and Libyan Airlines, remain stalled due to long-standing instability. Consequently, EgyptAir currently faces no direct regional competition operating this specific airframe, potentially offering it a product advantage on competitive routes connecting Africa to Europe and the Americas.
Sources:
EgyptAir Accepts Delivery of First Airbus A350-900, Initiating Major Fleet Overhaul
Fleet Modernization and Strategic Expansion
Operational Deployment
Cabin Configuration and Passenger Experience
Environmental Performance
AirPro News Analysis: Regional Market Context
Airbus Press Release
Photo Credit: Airbus
Route Development
SAS and TAROM Codeshare Connects Scandinavia and Romania in 2026
SAS and TAROM announce a codeshare agreement effective February 2026, enhancing connectivity between Scandinavia and Romania with SkyTeam benefits.
This article is based on an official press release from SAS Group.
Scandinavian Airlines (SAS) and TAROM, the flag carrier of Romania, have announced a comprehensive codeshare agreement set to commence on February 9, 2026. The partnership aims to restore and enhance connectivity between Northern Europe and Romania following SAS’s strategic shift to the SkyTeam alliance.
According to the official announcement from SAS Group, the agreement will allow passengers to book single-ticket journeys between the two regions by utilizing major European transit hubs. This move integrates TAROM, a long-standing SkyTeam member, more deeply with SAS, which officially joined the alliance on September 1, 2024.
The collaboration addresses a significant gap in network connectivity, offering business and leisure travelers seamless baggage check-through and reciprocal loyalty benefits. Paul Verhagen, EVP & Chief Commercial Officer at SAS, emphasized the strategic value of the deal in a statement:
“This new partnership with TAROM marks an important step in enhancing connectivity between Scandinavia and Romania. By combining our networks and offering smooth transfers via key European hubs, we are giving our customers more choice, flexibility, and convenience.”
Rather than launching direct flights immediately, the airlines are leveraging a “virtual hub” strategy. According to the press release, the codeshare will route traffic through four key intermediate airports: Amsterdam (AMS), Brussels (BRU), Frankfurt (FRA), and Prague (PRG).
Under the terms of the agreement:
This structure allows the airlines to offer competitive travel times and frequency without dedicating aircraft to direct point-to-point routes, which are currently dominated by low-cost carriers.
This agreement is a direct consequence of the major airline alliance realignment that occurred in late 2024. When SAS departed Star Alliance to join SkyTeam, it lost its traditional connectivity to Eastern Europe provided by partners like Lufthansa and Austrian Airlines. Partnering with TAROM allows SAS to rebuild its footprint in the region using SkyTeam infrastructure.
For TAROM, the deal unlocks access to the high-yield Scandinavian market. The Romanian carrier is currently in the midst of a fleet modernization program, transitioning from aging aircraft to new Boeing 737 MAX 8 jets expected to arrive in late 2025 and 2026. By utilizing SAS for the northern leg of the journey, TAROM can expand its network reach while conserving its own metal for other high-demand routes. Narcis Obeadă, Commercial Director at TAROM, hinted at further expansion in the company’s statement:
“In the coming period, TAROM will announce new commercial agreements, in line with the company’s mission to safely and efficiently connect Romania and Romanian culture to the international air transport network.”
Travelers utilizing the codeshare will benefit from the full suite of SkyTeam alliance perks. Members of SAS EuroBonus and TAROM’s loyalty program will be able to earn and redeem points on these codeshare flights. Additionally, premium passengers will gain access to SkyTeam lounges at transit hubs.
The passenger experience on the SAS leg of these journeys is also set for an upgrade. SAS is currently rolling out free high-speed Starlink WiFi across its fleet, a project the airline states will be widely available by late 2025.
The “Prague” Anomaly and Market Positioning
The inclusion of Prague (PRG) as a connection hub is a notable operational detail. Following the cessation of operations by Czech Airlines (CSA) as a standalone SkyTeam member in October 2024, Prague is no longer a primary alliance hub. The decision to route traffic through PRG suggests a strong bilateral interline capability between SAS and TAROM that functions independently of major alliance hub infrastructure.
Furthermore, this deal clearly targets the premium business segment. While low-cost carrier Wizz Air operates direct flights between Bucharest and Copenhagen, legacy carriers cannot compete purely on price. Instead, SAS and TAROM are competing on schedule flexibility (multiple daily frequencies via hubs) and corporate perks (lounge access, baggage interlining). With tourism to Romania rising, foreign arrivals were up 13.4% year-on-year as of August 2024, the demand for reliable, full-service connectivity is likely to grow.
When can I book these codeshare flights? Will my bags be checked through to the final destination? Do these flights count toward SkyTeam Elite status?
SAS and TAROM Launch Strategic Codeshare to Connect Scandinavia and Romania
Operational Details: The Virtual Hub Strategy
RO marketing code on SAS flights connecting Copenhagen, Oslo, and Stockholm to these intermediate hubs.SK marketing code on TAROM flights connecting Bucharest to the same hubs.Strategic Context: The SkyTeam Realignment
Passenger Experience and Loyalty
AirPro News Analysis
Frequently Asked Questions
The codeshare agreement is effective starting February 9, 2026. Tickets should be available through both airlines’ booking channels prior to this date.
Yes. Because this is a full codeshare agreement, passengers traveling on a single ticket (e.g., Bucharest to Stockholm via Amsterdam) will have their baggage checked through to the final destination.
Yes. Flights marketed and operated by SkyTeam members (SAS and TAROM) count toward tier status and accrue redeemable miles/points according to the rules of your specific loyalty program.
Sources
Photo Credit: SAS Group
Route Development
Starlux Airlines Launches Taipei to Prague Flights in 2026
Starlux Airlines will begin nonstop service between Taipei and Prague in August 2026, featuring its exclusive First Class on the Airbus A350-900.
This article summarizes reporting by One Mile at a Time and Ben Schlappig.
Starlux Airlines, the Taiwan-based luxury carrier, has officially announced its expansion into the European market. According to reporting by One Mile at a Time, the airline will launch nonstop service between Taipei (TPE) and Prague (PRG) beginning August 1, 2026. This development marks a major milestone for the “boutique” airline, representing its first long-haul destination outside of North America.
The new route signals a strategic shift for Starlux, which has previously focused its long-haul efforts exclusively on transpacific flights to the United States. By deploying its flagship Airbus A350-900 aircraft on this sector, the airline intends to compete directly with legacy carriers by offering a premium-heavy configuration, including its exclusive First Class cabin.
Based on schedule data cited by One Mile at a Time and confirmed by Prague Airport, the service will initially operate three times weekly. The flights are scheduled for Tuesdays, Thursdays, and Saturdays, with plans to increase frequency to four times weekly by adding Mondays starting in October 2026.
The operational schedule is as follows:
Jiří Pos, Chairman of the Board of Directors at Prague Airport, welcomed the new connection in a statement regarding the launch.
“We estimate that the route will be used by approximately 95,000 passengers in the first year of operation.”
, Jiří Pos, Chairman of Prague Airport
Travelers on this route will experience Starlux’s most premium hardware. One Mile at a Time notes that the Airbus A350-900 is the only aircraft type in the Starlux fleet equipped with a First Class cabin. The aircraft features a total of 306 seats across four distinct classes:
This deployment is significant because it brings a true First Class product to the Taipei-Prague market, distinguishing Starlux from competitors that may only offer Business Class on similar routes.
While major European hubs like London Heathrow or Paris Charles de Gaulle are often the first ports of call for Asian carriers expanding westward, Starlux’s choice of Prague is driven by specific economic factors rather than traditional tourism volume alone. The Semiconductor Connection “Prague is a long-favored destination for Taiwanese travelers, and growing semiconductor industry ties are expected to further drive demand…”
, Glenn Chai, CEO of Starlux Airlines
Competitive Landscape According to the reporting by Ben Schlappig, this route is likely just the beginning of Starlux’s European ambitions. The airline has indicated plans to launch a second European destination later in 2026. While not officially confirmed, industry reports suggest Milan (MXP) is a strong contender, which would align with the carrier’s Strategy of connecting high-value fashion and business hubs.
Starlux Airlines Selects Prague for First European Route
Flight Schedule and Operational Details
Onboard Experience: The Airbus A350-900
AirPro News Analysis: Strategic Market Positioning
We observe that the economic ties between Taiwan and the Czech Republic have deepened significantly due to the semiconductor industry. With major investments from Taiwanese tech giants in Central Europe, business travel demand is high. Starlux CEO Glenn Chai highlighted this synergy in his remarks regarding the Launch.
Starlux will face direct competition from China Airlines, which launched the same route in July 2023. However, Starlux appears to be betting on its “luxury boutique” brand identity to capture high-yield business travelers and premium leisure tourists who prioritize cabin comfort and newer aircraft hardware.
Future European Expansion
Frequently Asked Questions
Photo Credit: Starlux Airlines
-
Commercial Aviation3 days agoAirbus Nears Launch of Stretched A350 Variant to Compete with Boeing 777X
-
Aircraft Orders & Deliveries4 days agoHarbor Diversified Sells Air Wisconsin Assets for $113.2 Million
-
MRO & Manufacturing4 days agoFedEx A300 Nose Gear Collapse During Maintenance at BWI Airport
-
Defense & Military4 days agoAirbus and Singapore Complete Manned-Unmanned Teaming Flight Trials
-
Defense & Military1 day agoApogee Aerospace Signs $420M Deal for Albatross Amphibious Aircraft