Air Arabia Consortium Secures AOC for New Saudi Low-Cost Carrier

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