Speaking in Delhi on Wednesday, Riyadh Air CEO Tony Douglas kept pushing the momentum message: “We will be the biggest start-up in our industry in the past 40 years.”
It’s a big claim, but one that carries credibility. After all, Riyadh Air isn’t just any start-up airline – it’s backed by the Saudi sovereign wealth fund and has a mission to bring much-needed nonstop connectivity to the Kingdom’s capital.
Douglas was in India to explore potential partnerships and lay the groundwork for the carrier’s commercial launch later this year.
Of course, launching a global airline isn’t easy. To help bolster connectivity from day one, Riyadh Air has signed big-name deals with the likes of Delta, Singapore Airlines, Virgin Atlantic, Turkish Airlines, and China Eastern. However, India and parts of Europe remain areas of relative weakness.
Regarding possible partners in India, there are only two large airlines in contention: Douglas was expected to meet with representatives from Air India and IndiGo. In separate developments, Riyadh Air appointed Bird Group as its local general sales agent (GSA), based in Delhi.
Speaking to Skift, Douglas emphasized the importance of the Indian market: “India has long been a crucial part of Riyadh Air’s network planning ahead of our operations launch. India is a beautiful nation which will play a big part in the success story of our airline, as travel and business opportunities multiply with the expanded offerings we are set to provide.”
The CEOs of both Air India and IndiGo are due to speak at the Skift India Forum in Delhi next week. Click here to view the full agenda and to book your ticket.
Why is India Important?
In 2023, outbound tourism from India to Saudi Arabia reached 1.5 million visitors. This marked a 50% increase from the previous year. Additionally, Indians represent the second largest population in the Kingdom and serve as a significant source of talent at Riyadh Air. India is also expected to be a crucial market for transit flights.
On the topic of connecting traffic, Douglas explains the business case for a new long-haul airline based in the Saudi capital: “Riyadh today is 93% point to point. Only 7% of Riyadh [passengers] transfer. If you take somewhere that’s geographically very close to us, for example, Qatar is 45 minutes flight away – transfers are 80% plus, so you’ve got opposites. The figures for Dubai are also very high.”
Despite Skift’s best efforts, Douglas did not reveal the airline’s launch destination, preferring to play his cards close to his chest. However, he did remind us the airline wants to connect 100 worldwide destinations by 2030. This should cover most major capitals as well as important secondary cities.
Network Strategy
Despite the lack of detail on a launch destination, Douglas was able to offer more insight into the broader network.
In its initial year, when the airline will only have widebody Boeing 787s, the aircraft will typically operate a flight between Riyadh and a Western European capital. From there, it will complete a 90-minute turnaround, return to Riyadh, and fly a shorter leg, such as to Mumbai or Dubai.
Over time, it is expected that smaller Airbus A321neo planes will pick up these regional routes. Notably, Douglas also revealed that the airline won’t add destinations where it cannot offer at least a daily frequency.
Gearing Up for Launch
Riyadh Air currently has just one Boeing 787-9 aircraft in its fleet, leased from Oman Air. The plane is being used as the carrier works towards its ‘AOC’ – or air operator certificate. This is an essential document that is issued once aviation regulators give their formal approval for an airline to begin commercial operations. Riyadh Air has already completed the proving flights and is currently training pilots on the 787.
“The process for the AOC is concluded, and we have a ceremony coming up where we’ll be waving our AOC, cutting cake, and smiling,” revealed Douglas.
From there, the company expects to launch flights with two 787-9 planes delivered from Boeing later this year.
Don’t be fooled by the modest start. In 2023, Riyadh Air placed an order for up to 72 Boeing widebody aircraft. The airline also has an order with Airbus for 60 A321neo aircraft, comprising both the regular and long-range variants. Douglas confirmed that he currently expects to receive the first Airbus planes in the second half of 2026.
Not satisfied with two large orders already pending, the airline is currently selecting an ultra-long-haul plane. A highly competitive campaign between the Boeing 777-9 and the Airbus A350-1000s is ongoing.
The Three Pillars
Taking a step back from the minutiae of the launch, Douglas also spoke about the broader strategy – something he calls Riyadh Air’s three pillars. In brief, these are:
In Douglas’ words, Riyadh Air’s purpose is “to be a digitally led business that enables travel,” drawing comparison to Booking.com, which sells experiences alongside travel.
The airline chief described guest experience as the “golden key that unlocks everything.” For example, the carrier is sending its cabin crew trainers to the Swiss city of Lucerne for butler training.
Rather than viewing itself as an airline, Douglas described the company as a “people business” or a “hospitality business” throughout the conversation.
A Digital Focus
As for being a digital native, he highlighted the airline’s “blank slate,” which enables the company to develop a new shopping experience for air travel.
How is Riyadh Air making this possible? It has created a shopping experience akin to Noon.com or Amazon, where one customer can shop for different origins and dates for a whole group to travel and then have them pay separately. No record locators would exist, so a passenger’s face is their ticket.
The airline is partnering with FLYR to develop these new high-tech formats. Paraphrasing Neil Armstrong, Douglas quipped: “A small step, but a giant leap for commercial aviation.”
When questioned about how this fits with the rest of the travel ecosystem, Douglas said the team has developed a sort of “Google Translate.” This should allow Riyadh Air’s booking experience to be compatible with the more conventional world of travel and GDS distribution systems. The airline is expected to showcase the product at the IATA AGM, which is being held in Delhi in June.
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