Saudi moves in on aviation market in Gulf

Saudi moves in on aviation market in Gulf

RIYADH: Undeterred by a crowded Gulf market, Saudi Arabia is going all in on an aggressive aviation expansion, with a massive jet order and the launch of a new national carrier. The project aligns with a bid to remake the once closed-off kingdom as a business and tourism magnet, but analysts say that even with official backing, its path to success is complicated.

This month Crown Prince Mohammed bin Salman unveiled Riyadh Air, the new airline which is intended to transform the capital into “a gateway to the world”, according to state media. Two days later, officials said Riyadh Air and Saudia, the kingdom’s existing flag-carrier based in Jeddah, would purchase 78 Boeing 787 Dreamliner jets.

The deal, which the White House valued at “nearly $37 billion” with options for up to 121 planes, constitutes the fifth largest by commercial value in Boeing’s history. Riyadh Air’s chief executive, Tony Douglas, told AFP that the airline would serve the international, regional and domestic markets — putting it in direct competition with Gulf heavyweights Emirates and Qatar Airways.

That raises hard questions about how Riyadh Air will grab market share, especially at a time when long-haul non-stop flights that avoid the Middle East altogether are