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Air Arabia Alliance Wins Bid to Operate Low-Cost Airline in Saudi Arabia

EASTERN PROVINCE, SAUDI ARABIA, JUL 20 – The airline aims to serve 10 million passengers annually by 2030, operating 45 aircraft to 81 destinations and creating over 2,400 direct jobs in aviation and tourism sectors.

  • On July 20, 2025, the Saudi General Authority of Civil Aviation announced that a consortium led by UAE-based Air Arabia with KUN Investment Holding and Nesma Holding won the licence to operate a new low-cost airline.
  • As part of Vision 2030 and the National Transport and Logistics Strategy, the carrier launch aims to diversify the economy away from oil and establish Saudi Arabia as a leading regional aviation hub.
  • Based at King Fahd International Airport in Dammam, the airline will operate 45 aircraft serving 24 domestic and 57 international destinations, Adel Al Ali said.
  • In a social media post, Abdulaziz Al Duailej said the new airline aims to enhance competitiveness, expand travel options and boost economy and tourism in the Eastern Region.
  • Looking ahead, the airport will expand operations to 77 movements per hour and boost capacity to 32 million passengers annually, the Saudi Press Agency reported, while the plan aims to accommodate more than 19.3 million passengers by 2030 at King Fahd International Airport.
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Gulf Today broke the news in United Arab Emirates on Sunday, July 20, 2025.
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