Route Development
Air India and Saudia Sign Codeshare to Boost India-Saudi Connectivity
Air India and Saudia finalize a codeshare agreement to enhance direct connectivity and streamline travel between India and Saudi Arabia starting February 2026.
Air India and Saudia (Saudi Arabian Airlines) have officially signed a codeshare agreement designed to enhance connectivity between India and the Kingdom of Saudi Arabia. The agreement, signed on January 15, 2026, is set to become effective in February 2026. This partnership aims to streamline travel for passengers by integrating flight schedules and offering seamless transfers across both carriers’ networks.
According to the joint announcement, the collaboration will focus on capturing the growing “point-to-point” traffic between the two nations, serving both the massive Indian diaspora in the Kingdom and the rising number of tourists visiting Saudi Arabia. By aligning their networks, the two national carriers intend to offer a competitive alternative to indirect routes currently dominated by regional hubs.
The core of the agreement allows passengers to book flights across both airlines on a single itinerary. This integration includes through-check-in for passengers and baggage to their final destination, eliminating the need to re-check luggage during transit.
Under the terms of the codeshare, Air India will place its “AI” code on Saudia flights departing from Jeddah and Riyadh. This provides Air India customers with access to several domestic destinations within Saudi Arabia, including:
Conversely, Saudia will place its “SV” code on Air India flights operating from Delhi and Mumbai. This opens up connectivity for Saudia passengers to a wide array of Indian cities, such as Ahmedabad, Bengaluru, Chennai, Hyderabad, Jaipur, Kochi, Kolkata, and Lucknow, among others.
Both airlines have framed this partnership as a critical step in their respective transformation strategies. Campbell Wilson, CEO of Air India, emphasized the importance of the Saudi market.
“Saudi Arabia is one of our most important markets… facilitating easier travel for the diaspora and supporting the Kingdom’s tourism goals.”
— Campbell Wilson, CEO of Air India
similarly, Saudia Director General Ibrahim Al-Omar described the deal as a strategic move to foster stronger bilateral ties, leveraging recent visa reforms that have made travel more accessible for Indian citizens.
The agreement aligns closely with Saudi Arabia’s Vision 2030, which targets attracting 150 million tourists annually by the end of the decade. India represents a top source market for this initiative. By opening access to secondary Saudi cities like AlUla (via Medina) and Abha, the carriers hope to distribute tourism traffic beyond the traditional hubs of Riyadh and Jeddah. Furthermore, the partnership directly addresses the needs of the “Visiting Friends and Relatives” (VFR) segment. With over 2.6 million Indians residing in Saudi Arabia, the largest expatriate community in the Kingdom, there is substantial demand for reliable connectivity to Tier-2 and Tier-3 Indian cities.
Countering the Super-Connectors
We view this agreement as a necessary consolidation of strength between the two national carriers to reclaim market share from Gulf “super-connectors” like Emirates, Qatar Airways, and Etihad. Historically, a significant portion of traffic between India and Saudi Arabia has flowed through hubs in Dubai and Doha. By coordinating schedules and offering direct “point-to-point” options, Air India and Saudia are positioning themselves to capture higher-yield traffic that prefers non-stop convenience over transit hubs.
Navigating Competitive Pressures
The deal also serves as a defensive measure against aggressive low-cost expansion. IndiGo has recently intensified its operations, launching daily flights from major Indian hubs to Jeddah. As a price leader, IndiGo dominates the cost-conscious labor traffic segment. By partnering, Air India and Saudia can better compete for premium and business travelers while utilizing their bilateral capacity entitlements, capped at approximately 50,000 seats per week since 2019, more efficiently without immediate fleet expansion.
Air India and Saudia Finalize Strategic Codeshare Pact to Boost Connectivity
Operational Details and Route Expansion
Expanded Network Access
Executive Commentary
Strategic Context: Vision 2030 and Diaspora Demand
AirPro News analysis
Sources
Photo Credit: Air India