In the 78 years since Saudi Arabia launched its flag carrier, Saudia, with a plane gifted by US President Franklin D. Roosevelt, the airline has served largely as a means of ferrying the faithful to Mecca while adhering to the country’s strict social rules. No alcohol is served. Women must wear clothing that covers their legs. Cabin crew can separate women from men who aren’t family. And some planes have a prayer nook with a screen indicating the direction to Mecca as it changes during the flight.
Saudia stands in sharp contrast to regional rivals that have redefined luxury travel with showers, in-flight butlers and bars where premium-class passengers can recline on a sofa, tumbler of Glenfiddich in hand. Emirates, Qatar Airways and more recently Turkish Airlines have built megahubs for travelers between Asia, Europe, Africa and North America. And their home bases have increasingly become destinations rather than mere transfer points, with beaches, amusement parks, high-end shopping and sumptuous hotels within easy reach of the arrival gate.
To get in on the action, Saudi Arabia is adding a second carrier, Riyadh Air, aiming to triple arrivals into the kingdom and siphon business and tourists from competitors. While the plan is short on details, the carrier aims to start flying in 2025, with planes bathed in blue and lavender. The company declines to say whether alcohol will be available on its aircraft, noting only that it will operate within Saudi law. Saudia will continue to focus on religious pilgrims on Hajj and Umrah.
Riyadh Air plans to reach 100 destinations by 2030, connecting passengers through King Salman International Airport, a sprawling new facility rising in the desert near the capital that’s designed to handle 120 million passengers a year by the end of the decade—30% more than Dubai’s current capacity. The goal is to tempt them to stay for business meetings or jaunts to the country’s monuments, mountains and beaches.
The carrier has ordered 39 Boeing Co. 787 Dreamliner jets with options for dozens more, and it’s in the market for as many as 400 narrowbodies. Industry watchers expect it to present another blockbuster deal at the Paris Air Show, where it’s planning a gala at the five-star, Saudi-owned Hotel de Crillon overlooking the Place de la Concorde. “Saudi Arabia’s growing population has a need for world-class connectivity,” says Tony Douglas, the company’s chief executive officer, an aviation veteran who until recently ran rival Etihad Airways. “Given the size of the kingdom in terms of land mass, having more than one national carrier is essential.”
The moves are part of a wider effort by Crown Prince Mohammed bin Salman to diversify the economy beyond oil, with soft-power investments in sports, entertainment and tourism. But getting the masses to visit a hot, dusty land where liquor isn’t served is a tough sell, no matter how luxurious the planes. “While there’s no doubt that Saudi Arabia has the means and resources to pour into building out its tourism industry, it doesn’t mean it will be easy,” says John Strickland, an analyst at JLS Consulting in London. “Riyadh Air will be going up against Qatar and Emirates, which have spent years building their business models.”
As the focus changes from pilgrims to leisure travelers, the Saudis plan to add a low-cost carrier flying from Dammam, the center of the country’s oil industry, and another new full-service airline based in Neom, the futuristic city under construction on the Red Sea coast. The aviation push “directly supports the industries that are essential to the kingdom’s Vision 2030 agenda, including tourism,” says Mohammed al-Khuraisi, vice president for strategy at the kingdom’s General Authority of Civil Aviation.
Emirates and Turkish Airlines are stocking up on widebody jets for the next phase of growth, crowding an already tough market. Riyadh Air will struggle to get takeoff and landing slots at big airports abroad. Emirates pumps a half-dozen A380 superjumbos into London’s Heathrow Airport every day, where slots are scarce. And Dubai has long established itself as a glamorous destination for party-loving globetrotters, with theme parks, the world’s tallest building and relaxed social etiquette that allows alcohol, nightclubs and fewer restrictions for women.
Even piles of cash don’t necessarily spell success, as Douglas’s previous employer, Etihad, can attest. A few years ago, the Abu Dhabi flag carrier spent lavishly on a fleet expansion and in-flight perks such as multiroom suites dubbed “The Residence” aboard its A380s. At the same time, it bought big stakes in ailing carriers from a half-dozen countries including Germany, India and Italy to funnel more traffic through the new hub. After the strategy imploded and losses piled up, Douglas was brought in to clean up the mess. He says his time there will inform his strategy at Riyadh Air, where he aims to focus on serving locals as much as foreigners. “We always learn important lessons from every experience,” he says. “We aim to attract visitors to the kingdom and also serve the huge local Saudi population.”Read next: China’s Plane Shortage Is Good News for Boeing
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