Latest news with #BanderAl-Muhanna
Skift
18-06-2025
- Business
- Skift
Saudi Low-Cost Carrier Flynas Launches IPO, But Israel-Iran Conflict Weighs on Market
Flynas is the first Middle Eastern airline to go public in nearly two decades — but its timing is far from ideal. Renewed regional tensions just days before the debut have caused regional airline stocks to slip. Flynas, Saudi Arabia's budget carrier, made its IPO debut Wednesday, but growing tensions between Israel and Iran weighed on regional markets and local airline stocks. Flynas had priced its offering at 80 riyals ($21.38) a share, giving the low-cost airline a valuation of 13.7 billion riyals ($3.7 billion). The shares initially dropped as much as 13% Wednesday and trading was briefly halted twice within the first 20 minutes of the session. By midday, shares were down but had recovered much of the loss. "Given how the situation changed this week with escalating geopolitical crisis and closure of air space and regional flight disruption, it may have been prudent to delay the listing until things settled," wrote Nishit Lakhotia, head of research at Bahrain's Sico Bank, on LinkedIn. The UAE's Air Arabia is down more than 3% this week, while Kuwait's Jazeera Airways tumbled as much as 4.2% on Wednesday, following its worst drop since 2020 earlier in the week. Despite the dip, the Flynas IPO was the largest in the Middle East so far this year and marked the first Gulf airline to go public in nearly two decades after Air Arabia in 2007. The IPO and Flynas Expansion The total size of the IPO is $1.1 billion, the company said when it announced the IPO price, and proceeds will be used to support fleet expansion, extend its network, and fund general corporate activities. In February, Flynas announced it would be receiving more than 100 Airbus aircraft over the next five years, with the expected growth of its fleet to more than 160 aircraft by the end of 2030. It has orders for 280 aircraft worth over 161 billion Riyals ($42.9 billion). In May, Flynas CEO Bander Al-Muhanna said the IPO would be "a strategic step that will accelerate the execution of our growth ambitions and solidify our position as the leading low-cost carrier for short- and medium-haul flights across the Middle East and North Africa by 2030." Flynas connects more than 70 domestic and international destinations with more than 1,500 weekly flights. For the first nine months of last year, it served 10.9 million passengers, according to its IPO prospectus. The airline aims to reach 165 domestic and international destinations, in line with the country's Vision 2030. Saudi Arabia will soon have four major airlines: Saudia, Flynas, Flyadeal, and Riyadh Air. Saudia and Riyadh Air are long-haul national carriers, while Flynas and Flyadeal are budget, short- and medium-haul. Riyadh Air hasn't launched yet, but its first flight is expected by the end of the year and it targets 100 million passengers by 2030. Saudia had 20 million passengers last year and Flyadeal had 7.9 million. Currently, the Saudia routes between Riyadh and Dubai are especially popular as business people move between the two cities. During the Skift Travel Podcast, Almosafer CEO Muzzammil Ahussain said: 'Given the demand, Riyadh to Dubai is one of the most expensive and profitable routes in the world. Especially the business class, given the amount of trade between the two countries. The business travel going on… It's sometimes $4,000-$5,000 for a one-hour business class flight.' He added: 'Investments in new airports, new airlines, [demand] is only going to increase.' Ahussain said he's hoping for an Almosafer IPO in the next 12 to 18 months. What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. Read the full methodology behind the Skift Travel 200.
Gulf Insider
16-02-2025
- Business
- Gulf Insider
Saudi Arabia's Flynas To Receive 100 Airbus Planes By 2030
Saudi Arabia's flynas has announced it will receive more than 100 Airbus airplanes over the next five years, with expected growth of its fleet to more than 160 airplanes by the end of 2030. The scheduled delivery is part of its orders for 280 aircraft worth more than SR161bn ($44bn), one of the region's largest purchase orders, making flynas the largest owner of single-aisle airplane orders in the Middle East. The news emerged as the airline hosted a visit of Airbus senior management at its Riyadh headquarters, coinciding with flynas receiving a new Airbus A320neo airplane, bringing the total number of this type in the flynas fleet to 54. This is in line with the company's strategic growth and expansion plan, launched under the slogan 'We connect the world to the Kingdom', in parallel with the objectives of the National Civil Aviation Strategy to enable national air carriers to contribute to connecting KSA with 250 international destinations, to accommodate 330m passengers, and to host 150m tourists yearly by 2030, including under the Pilgrim Experience Program (PEP) to facilitate access to the Two Holy Mosques. The visiting Airbus delegation toured headquarters in Riyadh and reviewed the innovative solutions offered by the company. It met with senior airline executives for discussions on prospects for cooperation and strengthening their strategic relationship. Bander Al-Muhanna, the chief executive and managing director of flynas, said: 'We value the visit of the Airbus senior management, which reflects the position of flynas as a leading Saudi carrier at the global level and also reflects the importance of our long-term partnership that has strengthened the contribution of flynas to achieving national goals in the aviation industry'. He pointed out the relationship between Airbus and the Saudi airline since its inception and said it further developed in 2016 after the signing of an agreement to purchase 120 aircraft. He added that the partnership moved to a new level last year with the signing of an order to purchase 160 Airbus airplanes of the A320 and A330 wide-body types.
Arab News
13-02-2025
- Business
- Arab News
Saudi low-cost carrier flynas to take delivery of over 100 Airbus planes by 2030
JEDDAH: Saudi low-cost carrier flynas expects to receive more than 100 Airbus aircraft over the next five years, part of its broader deal for 280 Airbus jets, as it expands its fleet to meet growth targets. The announcement coincided with a visit from Airbus senior management to flynas' headquarters in Riyadh. The airline aims to operate over 160 aircraft by 2030, with its 280-plane order — worth more than SR161 billion ($43 billion) — making it the largest holder of single-aisle aircraft purchase orders in the Middle East. This comes amid a growing backlog of aircraft orders in the aviation industry, with manufacturers like Boeing reducing delivery schedules for 2025, impacting Gulf carriers that have had to delay their launches. Dubai-based Emirates has been hit hard as Boeing's 777X faces major delays, with deliveries now expected no sooner than 2027. 'We value the visit of the Airbus senior management, which reflects the position of flynas as a leading Saudi carrier at the global level and also reflects the importance of our long-term partnership that has strengthened the contribution of flynas to achieving national goals in the aviation industry,' said Bander Al-Muhanna, CEO and managing director of flynas. He noted that flynas' partnership with Airbus began at its inception and strengthened in 2016 with an order for 120 aircraft. The collaboration reached a new level in 2024 with an agreement to purchase 160 Airbus A320 and A330 wide-body jets. The expansion aligns with Saudi Arabia's National Civil Aviation Strategy, which aims to connect the Kingdom with 250 international destinations, accommodate 330 million passengers annually, and attract 150 million tourists by 2030. The initiative also supports the Pilgrims Experience Program, designed to facilitate access to the Two Holy Mosques, the company said in a press release. The Airbus delegation's visit also marked flynas receiving a new Airbus A320neo last week — the first delivery of the year — bringing its fleet of the models to 54 aircraft. During their visit, Airbus executives toured flynas' headquarters and reviewed the airline's latest aviation innovations. They also met with senior officials from the Saudi airline to discuss ways to strengthen their long-term partnership. Saudi Arabia has been pushing to expand its aviation sector under Vision 2030, with national carriers ramping up fleet expansions to meet the Kingdom's growing travel and tourism targets.
Zawya
13-02-2025
- Business
- Zawya
Delivery of more than 100 aircraft in five years until 2030 to flynas
flynas fleet to grow up to 160 aircraft by 2030 Purchase orders amounted up to 280 aircraft worth 161 billion Saudi riyals. Riyadh: flynas, the leading low-cost airline in the world and the best LCC in the Middle East coinciding with the visit of Airbus senior management, to the flynas headquarters in Riyadh, announced that it will receive more than 100 Airbus aircraft over the next five years with expected growth of its fleet to more than 160 aircraft until the end of 2030. This is part of its orders for 280 aircraft worth over 161 billion Saudi Riyals, one of the region's largest purchase orders, making flynas the largest owner of single-aisle aircraft orders in the Middle East. The visit of Airbus delegation also coincided with flynas receiving a new Airbus A320neo aircraft, the first on February 8, 2025, bringing the total number of this type in the flynas fleet to 54 aircraft. This is in line with the company's strategic growth and expansion plan, launched under the slogan "We connect the world to the Kingdom," in parallel with the objectives of the National Civil Aviation Strategy to enable national air carriers to contribute to connecting KSA with 250 International destinations and to accommodate 330 million passengers and to host 150 million tourists yearly by 2030 and the objectives of the Pilgrims Experience Program (PEP) to facilitate access to the Two Holy Mosques. The visiting Airbus delegation toured the flynas headquarters in Riyadh on Wednesday, February 12, and reviewed the innovative solutions offered by the company in the aviation industry. They also met with senior flynas executives, where the two sides discussed prospects for cooperation and strengthening their strategic relationship. Bander Al-Muhanna, CEO and Managing Director of flynas, said: "We value the visit of the Airbus senior management, which reflects the position of flynas as a leading Saudi carrier at the global level and also reflects the importance of our long-term partnership that has strengthened the contribution of flynas to achieving national goals in the aviation industry." He pointed out that the relationship between flynas and Airbus began since its inception and developed in 2016 after the signing of an agreement to purchase 120 aircraft, until the partnership moved to a new level last year, 2024, with the signing of an order to purchase 160 Airbus aircraft of the A320 and A330 wide-body types.
