Air Arabia has confirmed that it has secured regulatory approval to launch a new budget airline in Saudi Arabia.
In a statement shared on social media platform X, the company said: “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.”
Air Arabia led a consortium of stakeholders in the license bid, which included Kun Investment Holding, and Nesma Group.
The project includes plans to operate a fleet of 45 aircraft by the end of the decade. The new airline will be based at King Fahd International Airport (DMM) in Dammam.
The licence was awarded by the General Authority of Civil Aviation (GACA), which oversees regulatory approvals in the Kingdom’s aviation sector.
According to GACA, the new airline is expected to support Saudi Arabia’s efforts to enhance domestic and international air connectivity, particularly in the eastern region.
The planned network will initially include 24 domestic and 57 international destinations. The carrier aims to transport up to 10 million passengers annually by the end of the decade.
The project forms part of the National Transport and Logistics Strategy, a central pillar of Vision 2030.
This broader initiative seeks to diversify the Saudi economy and improve the performance of key infrastructure sectors, including transport and logistics.
GACA stated that the airline is intended to help increase operational capacity and service quality within the Kingdom’s aviation industry.
