AVIATION

SAUDI AIMS TO BECOME REGION’S KEY AVIATION HUB

Saudi Arabia is eyeing USD 100 billion of investments in the transport and logistics sector, according to Eng. Saleh Al-Jasser, minister of transport and logistics services.

The kingdom aims to transport 300 million passengers and five million tonnes of goods – more than three times and five times, respectively, of current levels – to 250 destinations across the world by the end of this decade.

The government is also set to launch aviation companies with world-class services, as well as develop airport facilities through headquarters based in Riyadh and Jeddah.

“The minister noted that there are many opportunities for the private sector to realise our ambitions, pointing out that the ministry has changed more than 25 airports into holding companies to be ready for privatisation, in addition to approving hundreds of applications for airplanes and opening new destinations for several countries,” according to the Saudi Press Agency (SPA), noting that the kingdom aims to become the region’s major hub by 2030.

The government is also planning to launch a new national airline to complement its flag carriers Saudia, flynas, and Flyadeal, and build a new international airport in Riyadh, in addition to eight new regional airports, according to the General Authority of Civil Aviation (GACA).

 

ENORMOUS OPPORTUNITIES

Minister Al-Jasser made the announcement during the first Future Aviation Forum held recently in Riyadh. Showcasing the wealth of opportunities in the kingdom’s logistics and aviation sector, the event attracted more than 2,000 participants, and over 4,000 attendees across 60 countries.

“The event will witness the signing of over 50 agreements and memorandums of understanding, in addition to launching several important policies and strategies for the civil aviation sector, and signing a big number of partnerships between the public and private sectors,” the SPA wrote in the run-up to the forum.

Earlier this year, GACA and Matarat Holding Company confirmed that they had completed transforming 25 airports in the kingdom. This included the creation of the Airports Cluster 2 Company, mandated with managing and operating 22 airports, bringing oversight for construction, operation, and management under one roof.

The goal is to improve service delivery, integrate international best practices in airport management, and increase competitiveness. Investment and commercial opportunities in the sector, including airports, freight, catering, maintenance, and ground services, will be opened to local and foreign investors in the near future.

“The scale of opportunity for the aviation world in Saudi Arabia is unprecedented. The Future Aviation Forum is an opportunity to participate from the outset in Saudi Arabia’s rapid emergence as the Middle East’s preeminent aviation hub,” said GACA president Abdulaziz Al-Duailej.

 

AIRPORT REPORT CARD

The kingdom is also looking to improve the efficiency of its airports, and has developed a report card that tracks the aviation sector’s productivity and efficiency.

King Khalid International Airport in Riyadh was ranked first among Saudi airports handling more than 6 million passengers annually, according to a GACA survey. Prince Mohammad Bin Abdulaziz International Airport in Madinah was ranked second, while King Fahd International Airport in Dammam was third. Prince Sultan bin Abdulaziz International Airport in Tabuk was ranked first among airports that handled less than 6 million passengers annually.

Saudi Arabia’s low-cost carrier flynas is also looking to expand its fleet as part of a new strategic plan. The airline raised its volume of orders to 250 aircraft, and aims to explore planes of different capabilities to fly to new destinations, supporting tourism and contributing to the transportation of pilgrims and Umrah performers, the company said.

The company aims to open new bases in several countries, and add to its 70 domestic and international destinations through its fleet of more than 35 aircraft. The carrier has transported more than 55 million passengers since it was launched in 2007.

“flynas is classified as one of the top 10 low-cost airlines in the world, a position we have gained through operational efficiency and distinguished service we provide to our guests. We will work to share this experience and competence with new partnerships that we intend to establish in several locations," according to Bander Almohanna, the CEO and managing director of flynas.

Meanwhile, Saudi Arabian Airlines (Saudia) has also seen a turnaround in international travel and noted that it has reached 83% of activity levels that were lost due to COVID-19. The airline also secured funding for 73 new aircraft.