Web Desk:
Saudi Arabia has officially granted a license for a new low-cost airline led by UAE-based Air Arabia. This will be a significant step toward enhancing air connectivity, creating jobs, and improving transportation infrastructure in the Kingdom’s Eastern Province.

This new carrier is a joint venture of Air Arabia, KUN Investment Holding, and Saudi company Nesma. Headquartered at King Fahd International Airport in Dammam, the airline will fly for both domestic and international destinations. The goal is to boost competition and provide affordable travel choices in Saudi Arabia’s rapidly expanding aviation market.

According to the General Authority of Civil Aviation (GACA), the airline plans to serve 24 cities within the Kingdom and 57 international destinations. With a fleet of 45 aircraft, it aims to carry up to 10 million passengers annually and generate over 2,400 direct jobs—supporting MBS’s Vision 2030 strategy to diversify the economy and promote local employment.

GACA stated: “This initiative will improve air connectivity in the Eastern Province, increase seat availability, and give travelers more affordable options.”

The announcement aligns with Saudi Arabia’s broader ambition to become a major aviation hub in the region. Under the National Strategy for Transport and Logistics Services, the Kingdom is aiming to accommodate 330 million passengers and transport 4.5 million tons of air cargo each year by 2030.

In support of this strategy, Eastern Province Governor Prince Saud bin Naif bin Abdulaziz has also unveiled master development plans for King Fahd International Airport, Al-Ahsa Airport, and Al-Qaisumah Airport. Alongside this, a new corporate identity for Dammam Airports Company was launched, along with a SR1.6 billion (\$426 million) development package covering 77 infrastructure projects aimed at enhancing passenger services and airport facilities.

In 2024, King Fahd International Airport handled 12 million passengers, reflecting a 15% increase from the previous year. The airport also broke records by exceeding 50,000 passengers in a single day for the first time, according to Dammam Airports Company.

With rising demand and expanding infrastructure, the launch of this new budget airline is expected to reinforce Dammam’s role as a vital aviation gateway and enhances Saudi Arabia’s goal of leading the Middle East’s civil aviation sector by 2030.

Budget Airline?

A budget airline—also known as a low-cost carrier (LCC)—is an airline that offers cheaper airfares by minimizing operational costs. Here’s what typically characterizes a budget airline:

Lower ticket prices than traditional airlines
No-frills service: Meals, checked baggage, seat selection, and in-flight entertainment often come at an extra charge
Efficient aircraft usage: Shorter turnaround times and simpler aircraft fleets to cut costs
Point-to-point travel: Usually flies directly between destinations rather than using a hub-and-spoke model

Examples of budget airlines include Ryanair, easyJet, AirAsia, and Air Arabia.