Air Arabia to Establish New Low-Cost Airline in Dammam, Enhancing Connectivity

New Airline Initiative in Saudi Arabia

Air Arabia, in partnership with local Saudi companies, has been awarded a license to create a new low-cost airline based in Dammam, Saudi Arabia. This undertaking is aligned with Saudi Vision 2030, which promotes regional connectivity by introducing services to 81 destinations with a fleet of 45 aircraft.

Key Details of the Airline Launch

As of July 20, 2025, the Saudi General Authority of Civil Aviation (GACA) announced Air Arabia’s successful bid in collaboration with Kun Investment Holding and Nesma Group, focused on operating a national low-cost airline from King Fahd International Airport in Dammam.

• Fleet Size: 45 aircraft
• Domestic Cities Connected: 24
• International Destinations: 57
• Passenger Target by 2030: Approximately 10 million
• Job Opportunities: Over 2,400 jobs

Airline’s Mission and Impact

The introduction of this airline aims to boost competition, expand seat availability, and provide more affordable travel options for residents, particularly those in the Eastern Region. The move signals a substantial shift in Saudi Arabia’s aviation landscape, reinforcing Dammam as an emerging travel hub rather than just a transient location.

The Consortium Behind the Airline

The license was awarded to a consortium featuring:

1. Air Arabia: Recognized as a prominent low-cost carrier within the region with extensive experience.
2. Kun Investment Holding: A Saudi firm providing capital and regional insights.
3. Nesma Group: Known for its diversified operations in aviation and infrastructure.

Transforming Dammam into an Aviation Hub

Dammam has not traditionally held a central role in Saudi aviation, with most advancements leaning toward Riyadh and Jeddah. Launching the new airline there seeks to tap into an economically vital yet under-connected region.

• Improved Connectivity: Expanding travel options for Eastern Province inhabitants.
• Tourism and Business Support: Enhancing traveling conditions for both visitors and business professionals.
• Reducing Traffic on Larger Airports: Distributing air traffic effectively across multiple hubs.

Saudi Arabia’s Broader Aviation Strategy

Saudi Arabia is making significant investments in aviation as part of its Vision 2030 framework, aiming to diversify beyond oil reliance. This strategy involves:

• Attracting $100 billion in aviation investment.
• Serving over 330 million passengers annually.
• Connecting to more than 250 global destinations.
• Enhancing aviation’s contribution to the GDP.
• Liberalizing airport and airline operations to encourage new entrants.

Benefits of the New Airline for Travelers

This new low-cost airline will offer significant advantages for travelers by improving the overall travel experience:

Operational Distinctions

This new airline aims to differentiate itself from existing carriers, such as Flyadeal, which primarily focuses on domestic routes, and Riyadh Air, targeting long-haul premium travel. Instead, it fills a niche for low-cost, regional connectivity, particularly beneficial for those in Eastern Saudi Arabia.

Conclusion

This new venture represents a meaningful change in the aviation landscape of Saudi Arabia, promising enhanced connectivity for local travelers, tourism growth, and job creation. The launch of this low-cost airline could redefine travel patterns, especially for taxis and transfer services, by enabling more residents to access both regional and international connections.

Many travelers find invaluable insights from reviews and feedback regarding services. However, nothing compares to firsthand experience. On LocalsRide, you can hire a car with a driver from verified providers at reasonable prices, empowering informed decisions without hidden fees or disappointments. With LocalsRide, travelers benefit from convenience, affordability, and an extensive selection of vehicles within their preferences. Book your Ride now on LocalsRide.com.