Air Arabia-led consortium gets nod to launch airline in Saudi Arabia

15/09/2026 04:22 AST

The new carrier is expected to create more than 2,400 direct jobs, contribute to GDP, and support tourism growth and air connectivity in the Eastern Province, in line with the broader goals of the aviation programme.

The issuance of the certificate follows the airline's successful fulfilment of all regulatory and operational requirements in accordance with the executive regulations of the Civil Aviation Law, particularly those related to safety, security, and operational quality standards.

In July 2025, GACA announced that the consortium, comprising Air Arabia Group, Nesma Group, and Kun Holding Company, won the GACA competition to establish and operate a new national low-cost airline, as the best bid submitted, with majority Saudi ownership.

Captain Sulaiman bin Saleh Almuhaimedi, executive vice president of aviation safety and environmental sustainability at GACA, said that the license was granted after the airline successfully completed all the required technical and regulatory stages and procedures to ensure the highest levels of safety and operational compliance.

He noted that granting the AOC to the new carrier is aimed at positioning Saudi Arabia as a global logistics hub and an international aviation hub.

"The launch of Air Arabia's operations from Dammam will contribute to enhancing competition and improving performance in the air transport market, while supporting trade and tourism in the Eastern Province and creating new local employment opportunities," he added.

Saj Ahmad, chief analyst at London-based StrategicAero Research, said with Saudia, RiyadhAir, flynas and flyadeal already flying domestically and regionally, amidst the backdrop of a regional situation, the decision to award another AOC to Air Arabia will probably benefit passengers if a price war ensues.

Ahmad noted that the new carrier "will of course poach customers from other airlines."

Khaleej Times