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Bloomberg
Saudi Arabia’s new state-owned discount carrier plans to build a fleet of as many as 50 aircraft by 2020 and will choose within weeks between narrow-body models made by Airbus Group SE and Boeing Co.
Flyadeal will select either Airbus A320s or Boeing 737s that it will lease or obtain through a transfer of orders from parent company Saudi Arabian Airlines, the group’s director general, Saleh Al Jasser, told reporters in Dubai.
It is confirmed that the low-cost unit will serve the domestic and regional markets within a four- to five-hour radius from its hub in Jeddah, using a single-class cabin.
According to the reports, the new budget airline will compete for the lucrative Saudi Arabian market with its own parent company and Flynas. Qatar Airways’ Saudi Arabian venture Al Maha Airways and Saudi Gulf have been awaiting regulatory approvals for several years to operate in the market.
Flyadeal, the creation of which was announced last week, is a subsidiary of the holding company that also owns Saudia.
Huge capital has been invested to ensure its success on a large scale globally. It is also expected to pose a tough competition to various established names in the avitaion industry in the gulf region.
Flyadeal will either transfer aircraft orders from Saudia or put out a request for quotations to lease planes, said Al Jasser, who will chair the discount carrier’s board.
Saudia is also considering turboprops for domestic routes between its main airports within Saudi Arabia. It’s also studying a new hub in the south of the country with Abha being one option, he said.
Flyadeal is a Saudi low-cost airline to be based at King Abdulaziz International Airport in Jeddah. It is owned by Saudi flag carrier Saudia.
According to well-placed sources, the airline is expected to launch operations in mid-2017 with flights to domestic destinations.
Saudia, the flag carrier of Saudi Arabia, announced the creation of Flyadeal in April 2016. The venture is part of Saudia Group’s SV2020 Transformation Strategy, which aims to elevate the group’s units into world-class organisations by 2020.
Flyadeal will cater to domestic travellers, Hajj and Umrah pilgrims, and the rising number of tourists to Saudi Arabia, among other groups.
Flyadeal will initially operate flights to major domestic destinations, including Riyadh and Dammam, before expanding to regional markets.
It is expected to garner good response from this market.