Air Arabia-led consortium wins bid to launch new low-cost airline in Saudi Arabia

Image courtesy: WAM

A consortium comprising Air Arabia, Nesma Group, and KUN Holding has won a bid from Saudi Arabia’s General Authority of Civil Aviation (GACA) to establish and operate a new national low-cost airline headquartered in Dammam.

The carrier will be based at King Fahd International Airport and is intended to boost both domestic and international connectivity for the Eastern Province.

The win marks the result of a strategic partnership among the three firms, aimed at supporting the kingdom’s aviation goals and economic development objectives.

“We are proud to have been selected by GACA to launch a new national low-cost airline headquartered in Dammam,” said Adel Al Ali, group CEO of Air Arabia. “This achievement represents a key milestone that reaffirms our commitment to supporting the growth and development of the kingdom’s aviation sector.”

New airline inspired by Air Arabia’s model

The airline, which draws on Air Arabia’s regional low-cost operating model, aims to deliver reliable and value-driven travel for passengers while creating economic opportunities in the region. According to Al Ali, the project will contribute to job creation and the broader economic development of the Eastern Province.

✈️ Big News!
We’re proud to announce that Air Arabia has been awarded to establish a new low-cost airline based in Dammam by Saudi Arabia’s @ksagaca 🇸🇦.
We thank #GACA for their trust and support. Stay tuned for more updates on this exciting new venture! @NesmaCompany…

— Air Arabia (@airarabiagroup) July 20, 2025

Faisal Bin Saleh Al-Turki, president of Nesma Group, and Mohamed Bin Nabil Hefni, CEO of KUN Holding, called the initiative a direct contribution to strengthening Saudi Arabia’s tourism infrastructure and local economy.

“Launching a new low-cost carrier from Dammam is not merely an air transport project,” they said in a joint statement, “but a contribution to creating high-quality jobs, empowering national talent, and supporting aviation-related commercial activity. We believe this project reflects the private sector’s role in supporting the goals of Saudi Vision 2030.”

By 2030, the airline plans to operate 45 aircraft, covering 24 domestic and 57 international destinations, and serve around 10 million passengers annually.

The project is expected to generate over 2,400 direct jobs in the aviation sector and contribute significantly to tourism and economic growth in the Eastern Province.

Read: Air Arabia Abu Dhabi to increase operational capacity by 40% in 2025