Just under a year ago, Saudi Arabia announced its plans to launch a new national airline. Rather than replacing the existing flag carrier Saudia, the country plans instead for the new airline to operate alongside its main airline. As such, it has devised a two-hub strategy, which will see the new carrier based in Riyadh.

The story so far

The story concerning Saudi Arabia's proposed second national airline began in June last year, when the country announced its plans to set up such a carrier. It intends to do so as part of an initiative known as Vision 2030, a project aimed at reducing Saudia Arabia's dependence on oil by generating income through increased tourism.

Exemplifying its ambitions in this sector, the country has set a goal of reaching 100 million visitors a year within the next decade. While Saudia will likely play a significant role in enabling this, the carrier has made losses in recent years.

Furthermore, as Simple Flying explored shortly after the announcement regarding the establishment of the new airline, Saudia's network is rather small relative to the size of the carrier. As such, Saudi Arabia's plans to form a second national airline will be an important part of achieving its ambitious tourism-related targets.

Saudia Boeing 777
Saudia alone wouldn't provide sufficient capacity to achieve the country's tourism goals. Photo: Vincenzo Pace | Simple Flying

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Riyadh will be the new airline's hub

Also tied to the Vision 2030 project, according to Gulf News, is the intention to transform Saudi Arabia into a Middle Eastern aviation hub. You only have to look at the success of the likes of Qatar and the UAE as transit destinations to know what a good idea this can prove to be. As such, the country plans to handle 330 million passengers a year, compared to the 100 million it has capacity for now.

A key part of achieving this goal will be implementing a two-hub strategy. This will allow Saudi Arabia to spread its capacity across two airports, rather than concentrating passengers through one facility. Specifically, Saudia will be based in Jeddah, while the new carrier will operate out of Riyadh. The Head of Strategy at the General Authority for Civil Aviation, Mohammed Alkhuraisi, explained:

"Jeddah is the gateway to the two holy mosques and the Red Sea line, while Riyadh is the business hub, and it requires different products."

Saudia Airbus A320 Riyadh
Saudi Arabia's dual-hub operation will feature Jeddah's King Abdulaziz International Airport and a new airport in Riyadh. Photo: Stefan Krasowski via Wikimedia Commons

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The carrier remains unnamed

A key part of establishing an airline is forming its brand identity, with the disclosure of its name playing an important role in this process. However, for now, this step has not been openly taken by the Public Investment Fund, the group that is most heavily involved in setting up the carrier. In this regard, Alkhuraisi states:

"The plans of the new airline in terms of operationalization, incorporating the company, naming, and launch date are all within PIF jurisdiction. As far as we know, the plans are moving, but the details are with PIF."

It will be interesting to see how the next phases of the carrier's formation pan out.

What do you make of Saudi Arabia-s two-hub strategy? Have you ever visited the country? Let us know your thoughts and experiences in the comments.

Source: Gulf News