New Low‑Cost Airline Set to Lift Dammam's Aviation Prospects

Arabian Post

2 days ago

A consortium led by Air Arabia and partners Nesma Group and KUN Holding has secured approval from Saudi Arabia's General Authority of Civil Aviation to establish and operate a low‑cost carrier based at King Fahd International Airport in Dammam. The airline is expected to begin operations in 2026, with a fleet of 45 aircraft serving 24 domestic and 57 international destinations by 2030. GACA projects the carrier will transport around 10 million passengers annually and generate over 2,400 direct jobs.
The airline forms part of the kingdom's broader National Transport and Logistics Strategy under Vision 2030, which seeks to diversify the economy, boost non‑oil revenues, and position Saudi Arabia as a global aviation hub. Officials emphasised that improved seat capacity from the Eastern Province will provide travellers with more competitive options and strengthen connectivity in both regional and global markets.
Air Arabia brings extensive low‑cost carrier experience to the alliance. Founded in 2003 and headquartered at Sharjah, UAE, the airline is the region's first and largest budget operator, currently managing a network spanning over 80 destinations, with more than 170 routes when including its subsidiaries. Nesma Group, a diversified Saudi conglomerate active in construction, hospitality and aviation services, partners through Nesma Airlines—a regional operator established in 2007. KUN Investment Holding contributes capital and local expertise, complementing the strategic framework.
ADVERTISEMENT
The consortium's ambitions align with enhancements unveiled in Dammam's aviation infrastructure. Governor Prince Saud bin Naif bin Abdulaziz unveiled integrated development plans for King Fahd International, Al‑Ahsa and Qaisumah airports, along with a SAR 1.6 billion package to modernise services, install electronic gates and boost passenger convenience. King Fahd International handled 12 million passengers in 2024—a 15 percent increase over the previous year—and posted record volumes, underscoring the region's growing appeal.
The new airline will also enhance competition against existing carriers. Saudi Arabia already hosts low‑cost operators such as flynas and flyadeal, both headquartered in Jeddah and operating from Dammam. Flynas currently fields 65 aircraft across 88 destinations, while flyadeal, a subsidiary of national carrier Saudia, operates 42 aircraft. The entry of a Dammam‑based low‑cost airline is expected to intensify competition on price and route coverage, particularly along under‑served domestic and international sectors.
Air Arabia's network strength is a key asset. The carrier has built a proven operational model via its hubs in Sharjah, Abu Dhabi, Morocco, Egypt and Pakistan, which may accelerate launch efficiency in Saudi Arabia. CEO Adel Al Ali and Nesma Group President Faisal Bin Saleh Al‑Turki affirmed that the partnership will deliver reliable value‑driven travel, support economic growth, and bolster national employment in Eastern Province and beyond.
Challenges will include ramping up fleet acquisition, training, infrastructure integration and regulatory alignment. Airline licence formalities, expected to be completed next year, will pave the way for aircraft procurement ahead of the projected 2026 launch. Operational rollout will require close coordination with authorities at King Fahd International—including the new Dammam Airports Co. corporate identity and enhanced gate systems—to ensure seamless passenger experience.
The introduction of a Dammam‑centric budget airline dovetails with the broader objective of accommodating 330 million passengers and 4.5 million tonnes of cargo annually across Saudi airports by 2030. Infrastructure investments and strategic alignment across multiple regions aim to imprint Eastern Province as a key aviation hub, reinforcing national goals of economic diversification and global logistics prominence.