News

The General Authority of Civil Aviation (GACA) has announced the winner of the competition for a new national low-cost carrier based in Dammam: the "Air Arabia Alliance." The new carrier will operate domestic and international flights to and from King Fahd International Airport in Dammam, contributing to enhanced air connectivity for Eastern Region, increased seat capacity, improved service quality for travelers, and creating a competitive environment that offers more choices, all in line with the objectives of the aviation program under the National Transport and Logistics Strategy.

The announcement came during a ceremony in which Governor of Eastern Region Prince Saud bin Naif bin Abdulaziz inaugurated the new identity and master plan for the King Fahd International Airport. The event also included the unveiling of the master plans for Al-Ahsa and Qaisumah international airports, the launch of the Dammam Airports Strategy, and the inauguration of a package of integrated development projects with a value exceeding SAR1.6 billion.

The announcement followed a public competition that attracted bids from several low-cost airlines aiming to establish a new Saudi-majority-owned national carrier headquartered in Dammam. The winning bid came from a consortium comprising Air Arabia, Nesma Group, and Kun Investment Holding, which submitted the most competitive proposal.

Minister of Transport and Logistic Services and Chairman of GACA Saleh Al-Jasser said: “The Kingdom, under the support of its wise leadership, is witnessing unprecedented advancements in aviation and air transport projects, initiatives, and services.”

He noted that launching a new low-cost carrier in Eastern Region is one of the initiatives of the aviation program derived from the National Transport and Logistics Strategy, launched by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister.

GACA President Abdulaziz Al-Duailej stressed that establishing a new low-cost national carrier based in Dammam is a major step toward achieving the aviation program’s goals. He highlighted that this step reflects GACA’s commitment to creating a competitive environment that offers more options for travelers across the Kingdom, especially in Eastern Region. He also pointed out that the volume and quality of the bids submitted illustrate the strong investment appeal of Saudi Arabia’s aviation sector.

The new national low-cost carrier based in Dammam is expected to expand travel options by serving 24 domestic and 57 international destinations. It aims to connect nearly 10 million passengers annually through King Fahd International Airport by 2030, in support of the sector’s strategic goals. The project will also create over 2,400 direct jobs, contribute to GDP growth targets under the aviation program, and support economic development and tourism in Dammam and Eastern Region. The alliance is expected to complete licensing procedures and begin operations in 2026.