Air India and Saudia Finalize Strategic Codeshare Pact to Boost Connectivity

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.

Operational Details and Route Expansion

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.

Expanded Network Access

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:

• Abha
• Dammam
• Gassim
• Gizan
• Madinah
• Taif

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.

Executive Commentary

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.

Strategic Context: Vision 2030 and Diaspora Demand

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.

AirPro News analysis

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.

Sources

• Air India & Saudia Press Release
• CAPA – Centre for Aviation
• OAG Schedules Analyser

This article is based on an official press release from Changi Airport Group.

Singapore Changi Airport Launches Autonomous Baggage Fleet to Boost Airside Resilience

Changi Airport Group (CAG) has officially launched its first fleet of fully driverless autonomous baggage tractors, marking a significant step in the aviation hub’s transition toward automated airside operations. The initiative, announced on January 20, 2026, aims to address persistent manpower shortages while enhancing operational efficiency across the airport’s terminals.

The initial deployment features two autonomous units operating on a live 7-kilometer route between Terminal 1 (T1) and Terminal 4 (T4). According to the announcement, this specific route was selected because the baggage handling systems of the two terminals are not physically connected, requiring external transport solutions. The launch follows nearly a year of rigorous testing, during which the vehicles completed over 5,000 trips and covered 20,000 kilometers without a single safety incident.

This development is part of Changi’s broader “Airside of the Future” roadmap, a strategic effort to redesign airport jobs and maintain service levels despite a tightening labor market in Singapore.

Operational Capabilities and Technology

The new fleet utilizes electric-blue autonomous tractors manufactured by Uisee, a Chinese autonomous driving technology company. These vehicles are designed to navigate the complex, dynamic environment of a live airfield without human intervention.

According to technical specifications released by CAG, the tractors are equipped with a suite of over 10 sensors, including LiDAR and visual cameras. This sensor array allows the vehicles to detect obstacles and navigate safely in various lighting and weather conditions, including heavy rain, a critical requirement for tropical operations.

In terms of capacity, each tractor can tow up to four baggage containers with a combined weight of approximately 10 tonnes. While the vehicles operate autonomously, they remain under the supervision of a “human-in-the-loop.” A remote operator monitors the fleet from a central control center and can intervene immediately if a tractor encounters a situation it cannot resolve independently.

“The autonomous baggage tractors can help us enhance worker safety, reduce worker workload and improve baggage handling productivity… [It] signals Singapore’s commitment to pioneering smart Airports technologies.”

Ms. Sun Xueling, Senior Minister of State for Transport

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Strategic Expansion and Workforce Impact

While the current rollout involves two units, CAG has outlined an aggressive expansion plan. Later in 2026, six additional autonomous tractors are scheduled for deployment at Terminal 2 (T2) to manage baggage transport between handling areas and aircraft stands. By 2027, the fleet is projected to grow to 24 vehicles.

The project is a collaborative effort between CAG and SATS, the airport’s primary ground handler, with co-funding provided by the Civil Aviation Authority of Singapore (CAAS). A primary driver for this automation is the need to redesign traditional airside roles. The shift allows existing tractor drivers to be upskilled into remote operator positions, moving staff from physically demanding outdoor environments to climate-controlled indoor monitoring roles.

Kuah Boon Kiam, Senior Vice President of Apron Services at SATS, emphasized the operational benefits in a statement:

“The collaboration will translate into more reliable baggage handling and smoother aircraft turnarounds, supporting on-time departures and a seamless airport experience.”

Kuah Boon Kiam, SVP Apron Services, SATS

AirPro News Analysis: The Automation Imperative

The deployment at Changi Airport reflects a wider trend among major Asia-Pacific aviation hubs, where aging populations are forcing operators to accelerate automation. Unlike European or North American hubs often focused on cost reduction, airports like Changi and Hong Kong International Airport (which also utilizes Uisee technology) are automating primarily to secure operational continuity.

By 2027, CAG estimates the ratio of manually driven tractors to autonomous models will be approximately 75:1. While this indicates that human drivers will remain essential in the medium term, the infrastructure being built today, specifically the remote monitoring protocols, lays the groundwork for a predominantly autonomous airside environment in the next decade.

Frequently Asked Questions

Who manufactures the autonomous tractors used at Changi?
The tractors are manufactured by Uisee, a technology company specializing in autonomous driving solutions.

Are the tractors completely unsupervised?
No. While they drive autonomously, they are monitored remotely by human operators who can take control if necessary.

What is the timeline for expansion?
Following the January 2026 launch, six more units will deploy at Terminal 2 later in the year, with a target of 24 operational units by 2027.

Does this replace human jobs?
The initiative is framed as a job redesign. Existing drivers are being upskilled to become remote operators, addressing the difficulty of hiring for outdoor manual labor.

Sources

• Changi Airport Group

This article summarizes reporting by Mexico News Daily and MND Staff.

Aeroméxico CEO Proposes Massive Terminal 3 Project for Mexico City International Airport

In a bold move to address chronic congestion at Mexico City International Airport (AICM), Aeroméxico has publicly proposed the construction of a new Terminal 3 (T3). According to reporting by Mexico News Daily, the airline’s Chief Executive Officer, Andrés Conesa, outlined a plan that would see the new terminal eventually replace the existing Terminal 1 and Terminal 2 facilities entirely.

The proposal, which Conesa detailed during an interview on the “RodCast” podcast, envisions a structural overhaul of the capital’s primary air hub. Rather than serving as a mere annex, the proposed T3 would consolidate operations into a single, modern facility capable of handling significantly higher passenger volumes. This development comes as the airport continues to operate under saturation decrees that have limited flight frequencies since 2022.

The Terminal 3 Proposal Details

According to the details shared in the interview and summarized by Mexico News Daily, the new terminal would be constructed on the eastern side of the airport, where Terminal 2 currently stands. Conesa explained that this location is strategically necessary because the western side (Terminal 1) houses critical fuel farms and pipeline infrastructure that are prohibitively difficult to relocate.

Capacity and Logistics

The project aims to increase AICM’s capacity from its current saturation point of approximately 50 million passengers per year to between 70 and 75 million annually. To achieve this, the plan requires a complex logistical reorganization:

• Relocation of Facilities: Existing maintenance workshops and hangars, including Aeroméxico’s own facilities, would need to be moved to the western side of the airport to clear space for the new terminal.
• Consolidation: The new T3 would be larger than T1 and T2 combined, effectively unifying the airport’s passenger operations under one roof.

Conesa emphasized that this expansion is intended to work in tandem with the Felipe Ángeles International Airport (AIFA) and Toluca International Airport. Together, this metropolitan system could handle over 100 million passengers annually, positioning Mexico City as a competitive global hub.

Strategic Context and Government Response

This proposal arrives at a critical time for Mexican aviation. The previous administration prioritized the development of AIFA to solve saturation issues, shelving earlier discussions regarding a third terminal at AICM. However, Aeroméxico argues that AICM remains the preferred hub for connectivity and requires immediate modernization to maintain efficiency.

Current Renovations vs. Structural Change

While Aeroméxico pushes for a structural overhaul, the federal government has initiated a different set of improvements. As noted in reports surrounding the proposal, the government recently announced an investment of approximately 8 billion pesos for renovations at AICM. These works are primarily focused on aesthetic and functional upgrades, such as bathroom improvements and painting, in preparation for the 2026 FIFA World Cup, rather than the capacity expansion Aeroméxico suggests.

“Building T3 on the T1 side is not viable due to the presence of critical fuel farms…”

, Andrés Conesa (via RodCast/Mexico News Daily)

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AirPro News Analysis

The Reality of a Dual-Hub System

Aeroméxico’s proposal signals a shift in the industry’s narrative regarding Mexico City’s airspace. For years, the political debate framed AIFA as the replacement for AICM’s saturation woes. However, Conesa’s comments suggest that the industry views a dual-hub system as the only viable long-term reality. By proposing a massive investment in AICM, the airline is effectively stating that AIFA alone cannot absorb the projected growth of the metropolitan area.

Political and Financial Hurdles

The feasibility of this project relies heavily on political will. With the Sheinbaum administration currently focused on “aesthetic” renovations for the World Cup, a multi-billion dollar capital project that disrupts current operations (moving hangars and demolishing terminals) faces a steep uphill battle. Furthermore, the funding model, whether public, private, or a partnership, remains undefined. Without explicit government backing, T3 remains a conceptual vision rather than an active project.

Frequently Asked Questions

What is the main goal of the Terminal 3 proposal?
The goal is to replace the aging Terminals 1 and 2 with a single, larger Terminal 3 to increase capacity to 75 million passengers annually and streamline operations.

Where would the new terminal be built?
It is proposed for the eastern side of the airport, currently occupied by Terminal 2.

Does the government support this plan?
As of January 2026, the government has not officially adopted this specific proposal. Current government efforts are focused on an 8 billion peso renovation of existing facilities for the 2026 World Cup.

Will this replace the Felipe Ángeles Airport (AIFA)?
No. The proposal envisions AICM and AIFA working together as a metropolitan system with a combined capacity of over 100 million passengers.

Sources: Mexico News Daily