Air Arabia, Nesma, KUN Holding to launch new Saudi low-cost airline

21/07/2025 02:28 AST

Sharjah budget carrier Air Arabia has announced that its consortium comprising Saudi entities Nesma Group and KUN Holding has won approval from the General Authority of Civil Aviation (GACA) for the establishment and operation of a new low-cost airline in the kingdom.

Based at King Fahd International Airport in Dammam, the airline aims to enhance domestic and international air connectivity for the Eastern Province, said a statement from Air Arabia.

This win marks the culmination of a shared vision and strategic partnership among the three parties, focused on delivering an efficient operating model that supports the objectives of the aviation programme goals, improves service quality for travelers, and contributes to driving national economic growth, it stated.

Group Chief Executive Officer Adel Al Ali said: "We are proud to have been selected by the GACA to launch a new national low-cost airline headquartered in Dammam. We extend our sincere gratitude to the Authority for its trust in us. As a leading low-cost airline operator in the region, this achievement represents a key milestone that reaffirms our commitment to supporting the growth and development of the kingdom's aviation sector."

"Through our proven economic model and regional expertise, this new partnership will deliver a reliable and value-driven travel experience for passengers and will contribute to economic growth and job creation in the Eastern Province and beyond," he stated.

According to him, the new national low-cost carrier is targeting to operate 24 domestic and 57 international destinations with 45 aircraft by 2030, aiming to serve around 10 million passengers annually from Dammam and the Eastern Province.

The project is projected to create over 2,400 direct jobs in the aviation sector and significantly contribute to tourism growth and local economic development in the region, he added.

Faisal Bin Saleh Al Turki, President of Nesma Group, and Mohamed Bin Nabil Hefni, CEO of KUN Holding, said: "We are proud to be part of this ambitious national initiative, which is the result of a strategic partnership with Air Arabia Group. This initiative aligns with the impressive developments in the kingdom's tourism and aviation sectors."

"Launching a new low-cost carrier from Dammam is not merely an air transport project, but a direct contribution to strengthening the tourism infrastructure and stimulating the local economy of the Eastern Province," they stated.

"This includes creating high-quality jobs, empowering national talent, and supporting aviation-related commercial activities. We believe this project reflects the private sector's role in supporting the goals of Saudi Vision 2030 and embodies the spirit of partnership between the public and private sectors to achieve transformative strides in sustainable development," they added.

Trade Arabia