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21-03-23

Jazeera Airways to Launch Budget Airline in Saudi Arabia as Part of Kingdom's Vision 2030

(MENAFN) Jazeera Airways, along with its partners in Saudi Arabia, is launching a budget airline in the country in line with Saudi Arabia's Vision 2030 economic transformation program. The new low-cost airline will be based at the King Fahd International Airport in Dammam and will contribute to the expansion of the tourism and aviation sector in the country. Jazeera Airways said that coordination is underway with regulatory authorities to obtain the necessary licenses in accordance with the applicable laws.

The announcement comes just days after the Saudi Crown Prince Mohammed bin Salman announced the creation of a new national airline, Riyadh Air, which will be wholly owned by Saudi Arabia's Public Investment Fund (PIF). The PIF has about USD620 billion in assets and backs strategic sectors central to the kingdom's economic diversification plans. Riyadh Air will connect the capital Riyadh to over 100 destinations around the world by 2030, leveraging the country's strategic geographic location between Asia, Africa, and Europe.

Saudi Arabia has invested billions of dollars in developing its tourism industry and aims to position itself as a global transport and logistics hub that will attract tourists, diversify its economy, and reduce its reliance on oil. The kingdom's Saudi Aviation Strategy calls for annual passenger traffic to be tripled to 330 million by 2030, boosting the number of destinations to 250 from 99 at present and establishing a new flag carrier. This strategy is backed by $100 billion in investments from the government and private sector.

Jazeera Airways, whose first flight was in 2005, is posting record profits and is planning to expand its operations in Saudi Arabia. The airline's net profit nearly tripled in 2022, soaring to 20.1 million Kuwaiti dinars (USD66 million) from 7.1 million dinars in 2021. The airline tripled the number of passengers it carried last year, reaching 3.6 million. In January 2022, the airline's board approved a USD3.4 billion deal to buy 28 narrow-body aircraft from Airbus.

Jazeera Airways operates a fleet of Airbus A320 aircraft with a two-class cabin, providing both business and economy services. It also runs cargo flights and serves 59 destinations across the Middle East, Central and South Asia, Africa, and Europe. The company's entry into the Saudi Arabian market is expected to help expand the budget airline sector in the country, providing more travel options for locals and tourists and contributing to the goals of the Vision 2030 program.
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