Delta Air Lines announced on Tuesday a new partnership with Riyadh Air, a startup airline backed by Saudi Arabia’s sovereign-wealth fund. The collaboration aims to introduce flights between the United States and Saudi Arabia, marking a significant step in the country's efforts to diversify its economy and promote tourism.
Riyadh Air, set to commence passenger flights next summer, is part of Saudi Arabia's strategic plan to reduce its reliance on oil revenues. The partnership between Atlanta-based Delta and Riyadh Air does not involve any ownership stakes between the two airlines.
While specific details regarding the commencement of flights and financial terms were not disclosed, both CEOs expressed their intention to engage in codesharing, allowing passengers to book tickets on each other's flights. This arrangement is subject to approval from the U.S. Transportation Department.
Looking ahead, Delta and Riyadh Air are considering the possibility of expanding their partnership into a joint venture, which would necessitate immunity from U.S. antitrust laws. This would enable the airlines to collaborate on pricing strategies and revenue sharing.
Delta's CEO anticipates initial passenger traffic to predominantly consist of travelers flying to the United States. However, as tourism in Saudi Arabia continues to grow, the distribution of passengers between the two countries is expected to balance out over time.
Notably, no U.S. carrier currently operates flights to Saudi Arabia. Saudia, the national airline of Saudi Arabia, offers nonstop services between the kingdom and key U.S. cities such as New York, Washington, D.C., and Los Angeles.
