Mohammed bin Salman, Saudi Arabia’s crown prince and prime minister, officially announced on Sunday the creation of Riyadh Air, a new national airline owned by the Public Investment Fund (PIF).

The company will be based in Riyadh, the country’s capital and largest city, from where it plans to offer services to «over 100 destinations globally».

The launch of Riyadh Air

Saudi government had revealed that it was finalising details to launch a new airline in September 2022, as part of a 100 billion dollars state initiative to boost the growth of the airline market in a region characterised by the presence of major carriers such as Emirates, Etihad Airways and Qatar Airways.

The new national carrier was unveiled as part of an ambitious project by the Kingdom of Saudi Arabia to promote the country as a business and leisure destination. The company would not compete directly with Saudia, which is based in Jeddah, the country’s second largest city. In this way, two national airlines would co-exist and complement each other’s services.

«The new national carrier will leverage Saudi Arabia’s strategic geographic location between the three continents of Asia, Africa and Europe, enabling Riyadh to become a gateway to the world and a global destination for transportation, trade, and tourism», the Public Investment Fund said in a press release.

Riyadh Air is expected to generate more than 200.000 direct and indirect jobs.

Tony Douglas appointed as CEO

The company will be chaired by Yasir Al-Rumayyan, Governor of the Public Investment Fund, while Tony Douglas will be its CEO. In addition to having more than forty years of experience, Douglas held the same position at Etihad as of January 2018.

See also: Etihad’s Tony Douglas wanted by new Saudi airline RIA as CEO

With an extensive career in the transport and infrastructure sectors, he would oversee the gradual expansion of Riyadh Air, which will initially aim to develop a short- and medium-haul network, distinct from Etihad’s proposed long-haul and premium service. However, the new Saudi airline would also develop its long-haul network in the near future.

Mr. Tony Douglas has been appointed Chief Executive Officer of #RiyadhAir. He has more than 40 years of experience in the aviation, transportation and logistics industries. pic.twitter.com/acqoeswIG5

— Public Investment Fund (@PIF_en) March 12, 2023

Possible aircraft orders

Last October, Reuters reported that the Kingdom of Saudi Arabia was in advanced negotiations with Airbus to purchase up to forty A350 aircraft.

The Wall Street Journal reported last Saturday that the Public Investment Fund is close to finalising a deal to order Boeing commercial aircraft for the new airline’s fleet. However, no further details are yet known about the models under consideration.

The order would be worth a total of 35 billion dollars. Although it was initially rumoured that it could be made official at the same time as the company’s launch, this has not yet been confirmed.