The Saudi General Authority of Civil Aviation (GACA) unveiled that an alliance of three companies won a bid to operate a new Saudi national low-cost airline, according to Reuters.
GACA announced that Air Arabia, Kun Investment Holding and Nesma would operate domestic and international flights from King Fahd international airport in Dammam.
Therefore, the new airline will further foster air connectivity for the Eastern Region, increase seat capacity as well as offer competitive travel options for passengers.
Crucially, the new flights seek to serve 57 international destinations and 24 local destinations by 2030.
Through a fleet of 45 aircrafts, the airline aspires to carry approximately 10 million passengers per year while creating more than 2,400 job opportunities.
To achieve the goals of the Aviation Program under the National Transport and Logistics Strategy, #GACA announces that «AirArabia Alliance» has won as the new low-cost national carrier at King Fahd International Airport in Dammam, with the aim of enhancing air connectivity in the… pic.twitter.com/8IRyOb2yD5
— هيئة الطيران المدني (@ksagaca) July 20, 2025
Launched in 2003, Air Arabia is a low-cost airline based in Sharjah, UAE. Currently, it operates a fleet of nearly 60 Airbus A320s and flies to more than 170 destinations across 30+ countries, the Middle East, North Africa, Asia, and Europe. The new milestone marks the first time for Air Arabia to co-operate a Saudi-licensed carrier.
Established in 2018 in Jeddah, Kun Investment Holding Company (KIH) has rapidly emerged as one of Saudi Arabia’s prominent investment houses. Its investment portfolio features real estate, construction, healthcare services, tourism and leisure, integrated solutions, as well as the health and fitness sectors.
Nesma Group stands out as a diversified Saudi enterprise with a background in aviation and infrastructure, gained through its former airline operations.
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