Saudi Arabia is set to invest highly in developing the kingdom's aviation sector. The latest example of this commitment is the launch of the new national carrier, RIA, which has been anticipated to have been pulled forward to the end of 2022 from the original launch date of 2024. Let's look closely at Saudi Arabia's bold plans for its aviation industry.

RIA's launch now set for the end of 2022

Although initially planned for 2024, the first flight of Saudi Arabia's second flag carrier, RIA, has been anticipated for the end of 2022. The development of the new national carrier is backed up by the kingdom's Public Investment Fund (PIF), which is investing a staggering $30 billion in developing Saudi aviation.

In the plans of Saudi Arabia, the new carrier RIA will be the primary driver to turn Riyadh into a world-class international hub. This strategy would put Riyadh in direct competition with Dubai International Airport (DXB), Abu Dhabi International Airport (AUH), and Doha International Airport (DOH). Therefore, to achieve this bold aim, the airline will need to build its fleet strategy on widebody aircraft to cater to international and intercontinental travel demand.

RIA needs a long-haul fleet

As a matter of fact, the new carrier RIA is reported to be interested in purchasing up to 40 Airbus 350s with potentially as many options. The purchase is expected to be enacted by RIA's sister carrier, Saudi Arabian Airlines (SV), which would keep some of the aircraft included in the order to expand its fleet. In October, Saudi Arabia was reportedly at an already advanced stage of negotiations with the European manufacturer for the purchase of the widebodies.

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The estimated price of $12 billion would be financed by the Saudi Public Investment Fund (PIF). On its side, Boeing also aimed to secure at least a slice of the total estimated 68-75 aircraft order to be fulfilled with its Boeing 787 family of aircraft, which already forms part of the fleet of Saudia.

When asked about the potential purchase, Airbus told Simple Flying:

"We have no comment on our confidential talks with customers which may or may not take place"

One country, two flag carriers

With the establishment of a second flag carrier, the kingdom of Saudi Arabia is adopting a rather bold and unusual strategy for its aviation sector. However, RIA has not been designed to replace Saudia, but rather to complement the already-existing kingdom's flag carrier as part of a strategic move to overshadow the almighty Gulf carriers.

As the provisional name of the new Saudi airline suggests, RIA will have its hub in Riyadh, the capital of the kingdom. In contrast, Saudi Arabian Airlines will continue to operate from its current hub, Jeddah King Abdul Aziz (JED). Therefore, Saudi Arabia's strategy for the two flag carriers is the establishment of two major intercontinental hubs targeting different types of travelers. Saudia will continue to focus on Hajj and Umrah flights, while RIA will be targeted at a more leisure-focused audience.

Saudi Arabia is investing huge sums of money into the rapid development of the kingdom's aviation industry. Indeed, $100 billion have already been allocated to foster the Saudi aviation sector. The multi-billion-dollar investment in aviation is part of the kingdom's "Vision 2030" plan to revolutionize Saudi Arabia's economy, developing new industries and attracting foreign capital with the main aim of detaching the kingdom from its reliance on oil. Instead, the Arabic kingdom aims to become a primary hub for intercontinental travel and a prime touristic destination.

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  Saudia

  IATA/ICAO Code:

  SV/SVA

  Airline Type:

  Full Service Carrier

  Hub(s):

  Dammam Airport, Jeddah Airport, Riyadh Airport

  Year Founded:

  1945

  Alliance:

  SkyTeam

  CEO:

  Ibrahim Alkoshy

  Country:

  Saudi Arabia