AIr Arabia designated as Saudi Arabia newest low-cost carrier

Monday, 21 Jul, 2025 0

Low cost carrier Air Arabia will soon add a 7th hub to its network. Following an open bid, a consortium made up of Air Arabia, Nesma Group, and KUN Holding ultimately received the license by Saudi Arabia’s General Authority of Civil Aviation (GACA) to establish and operate a new national low-cost airline.

The future Air Arabia Saudi is to be based at King Fahd International Airport in Dammam, a sprawling metropolis of over 2.5 million inhabitants. The carrier aims to improve domestic and international air connectivity in the Kingdom’s Eastern Province.

80 destinations targeted from Dammam by 2030

The joint venture reflects a strategic alignment between the three partners to develop a cost-efficient airline model that supports Saudi Arabia’s broader aviation goals, improves service standards, and contributes to economic diversification and growth.

Adel Al Ali, Group CEO of Air Arabia, called the announcement “a key milestone” and expressed gratitude to GACA for its trust. “As a leading low-cost operator in the region, we are committed to delivering a reliable, value-driven travel experience while supporting economic growth and job creation in the Eastern Province and beyond,” he said.

Faisal Bin Saleh Al-Turki, President of Nesma Group, and Mohamed Bin Nabil Hefni, CEO of KUN Holding, emphasized that the project is not only an airline venture. It represents also a boost to the local economy. “This initiative directly supports Saudi Vision 2030 by enhancing tourism infrastructure, creating quality jobs, and empowering national talent,” they said in a joint statement.

The new airline plans to operate 45 aircraft by 2030, connecting Dammam to 24 domestic and 57 international destinations. It aims to carry around 10 million passengers annually. The venture will generate over 2,400 direct jobs. And position Dammam as a growing hub in the Kingdom’s aviation and tourism landscape.

Close to 40 airlines currently serve Damman King Fahd International Airport which accommodated last year close to 13 million passengers. Among the airlines present at the airport is already Air Arabia. The low-cost carrier offers flights to Egypt and Sharjah.

Air Arabia to strenghten operations in Abu Dhabi following Wizz Air withdrawal

Air Arabia is present in 6 hubs in Africa, the Middle East and South Asia. They are  in Abu Dhabi, Ras-al-Khaimah and Sharjah (UAE), Alexandria (Egypt), Casablanca (Morocco) and Karachi (Pakistan).

In a recent development, Air Arabia also announced to boost connectivity out of Abu Dhabi. The announcement follows the withdrawal of low-cost carrier Wizz Air Abu Dhabi.

Air Arabia started to expand its fleet at Abu Dhabi. The carrier just added two Airbus A320 aircraft, bringing its total fleet size to 12 aircraft. It announced its plans to add two more Airbus A320 aircraft before the end of the year. The enhanced fleet will boost total capacity by 40% in 2025. New destinations include already Yerevan, Almaty, and Sialkot (Pakistan).

The airline serves over 30 destinations from Abu Dhabi to the Middle East, Africa, South Asia and Eastern Europe.



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