Riyadh Air set for launching commercial flights to Heathrow
Riyadh Air is finally getting ready for takeoff, promising to run the first commercial passenger flights to London Heathrow in its snazzy blue aircraft before April next year.
Saudi Arabia’s new national airline, owned by the Public Investment Fund, postponed its launch because of a yearlong delay in the delivery of eight Boeing 787 aircraft. Now that four of the planes have arrived, Riyadh Air will start flying to London and Dubai, with five other destinations to follow, CEO Tony Douglas told The National.
“Early in the new year we will be up and running,” Douglas said in an interview with the Abu Dhabi newspaper on the sidelines of the Dubai Airshow.
Riyadh Air, part of Saudi Arabia’s effort to return an air of chic to international travel, unveiled the couture-influenced uniforms worn by its flight attendants on a Paris runway last year. Last month, the airline started flights to Heathrow that were limited to employees of Riyadh Air and the PIF, as well as select guests.
Flydubai, meanwhile, announced it will introduce a three-class layout on its Boeing 787 planes, operating business class, economy and premium economy sections starting in 2027.
Flynas IPO oversubscribed by nearly 100 times before trading
The $1.1 billion IPO for Saudi Arabia’s Flynas low-cost airline has reached the runway and is ready for take-off after the offering to institutional investors was nearly 100 times oversubscribed.
The carrier, whose largest shareholders are Prince Alwaleed bin Talal’s Kingdom Holdings and the government’s Public Investment Fund, is the latest in a slew of IPOs for Saudi companies that have also encountered high demand, including Umm Al-Qura construction, which raised more than $500 million in March.
Flynas shares, which will start trading on Riyadh’s Tadawul Stock Exchange May 28, were set on Wednesday at 80 riyals apiece, the top of the range given by the IPO’s investment bankers.
Proceeds from the offering are slated for expanding Flynas’ fleet by 225 planes and launching several new flight hubs. The budget airline flies to 59 destinations and is popular with Muslim pilgrims to Mecca and expat workers from India, the Philippines and elsewhere.
Flynas is not alone among Gulf airlines interested in going public. Abu Dhabi-based Etihad Airways, owned by the ADQ sovereign wealth fund, is actively preparing for an IPO while Emirates and Qatar Airways have been mulling share sales for years.
Still waiting to stretch its wings is Riyadh Air, Saudi Arabia’s new national carrier wholly owned by the PIF, which plans to start flying its stylish royal blue jetliners this year in the fourth quarter.
Emirates’ Clark warns Trump tariffs threaten aviation industry
Emirates President Sir Tim Clark, who has run the Middle East’s biggest airline for two decades, says the UAE carrier can handle the costs of new U.S. tariffs.
Still, Clark told CNBC in an interview that the Trump administration’s “trade reset” could disrupt global commerce, with China’s tariffs on U.S. aerospace firms potentially raising costs for Emirates’ wide-body fleet.
“Business models like Emirates, given the international scope of what it does, the strength of what it does, will be able to ride this particular wave,” he said.
Clark said the aviation industry, however, remains in “uncharted territory” as U.S. tariffs are expected to drive up airline costs. “Right now, we are in troubled times,” he said.
Qatar Airways acquires 25% stake in South Africa’s Airlink carrier
Qatar Airways is building up its business in Africa.
The state-owned carrier has acquired a 25% stake in Airlink, the South African regional airline that flies to 45 destinations in 15 African countries, without disclosing how much it paid.
Qatar already flies 29 routes in the continent and will operate a code-sharing arrangement with the South African airline.
“Our investment in Airlink further demonstrates how integral we see Africa being to our business’ future,” Qatar Airways CEO Badr Mohammed Al-Meer said in a statement.
The Qatari carrier also owns a 60% stake in Rwanda’s new $1.3 billion international airport and a 49% interest in Rwandair.
Etihad Airways moves ahead with plans for a possible IPO
Etihad Airways is moving ahead with plans for a possible IPO, the first for a major airline in the Middle East, CEO Antonoaldo Neves said in an interview with Bloomberg.
The potential listing comes amid booming demand for air travel globally.
Airlines have raised their profit forecast to $30.5 billion this year as passenger count is expected to reach a record 5 billion, the International Air Transport Association said during its annual meeting, which wraps up in Dubai today.
Middle East carriers are faring particularly well, set to earn a net profit of $3.8 billion this year, up from $3.1 billion last year, according to the IATA.
Profit per passenger is among the highest in the world, netting $15.20 compared to the global average of $6.
Etihad, which has already recruited more than 1,000 cabin attendants this year, announced this week it is looking to add another 1,000 crew members.
The UAE flag carrier will host recruitment drives from June until the end of the year in 19 locations, including Athens, Vienna, Singapore, Cape Town, Colombo and Jaipur.
Saudia airline being repositioned for kingdom’s tourism push
As Saudi Arabia’s new Riyadh Air prepares to start flying next year, the kingdom’s venerable carrier Saudia is being repositioned to fit into a new blueprint for boosting business and tourism.
The Saudi Public Investment Fund has started talks to acquire Jeddah-based Saudia, which flies to 90 destinations, in a step that may lead to the airline’s privatization, Bloomberg reports.
The two airlines will work in tandem to pursue the kingdom’s twin goals of bolstering access to Saudi Arabia as a regional finance hub while also turning it into a magnet for foreign tourists.
Under the plan, Riyadh Air pursues the business crowd and Saudia will focus more on the market for religious pilgrimages to the holy cities of Mecca and Medina.
