Air Arabia Announces Winning Bid to Establish and Operate New LCC in Saudi Arabia

Air Arabia has today announced that a consortium led by the carrier, along with Nesma Group and KUN Holding, has won the bid to establish and operate a new national low-cost airline based in Dammam, Saudi Arabia.

Consortium Led By Air Arabia, Nesma Group and KUN Investment Holding Has Won the Bid to Establish a new National LCC Based in Dammam, Saudia Arabia - Courtesy Air Arabia, Nesma Group and KUN Investment Holding

On Sunday (July 20, 2025), Air Arabia announced that in partnership with Nesma Group and KUN Investment Holding, the consortium has won the General Authority of Civil Aviation’s (GACA) of Saudi Arabia’s contest to establish and operate a new national low-cost carrier (LCC) based In Dammam.  The new airline will aim to enhance domestic and international air connectivity for the Kingdom’s Eastern Province.  Today’s announcement marks the culmination of a shared vision and strategic partnership among the three parties, focused on delivering an efficient operating model that supports the objectives of the Aviation program goals, improves service quality for travelers, and contributes to driving national economic growth.

In Sunday’s announcement, Air Arabia Group’s CEO, Adel Al Ali, said,

“We are proud to have been selected by the General Authority of Civil Aviation (GACA) to launch a new national low-cost airline headquartered in Dammam.  We extend our sincere gratitude to the Authority for its trust in us.  As a leading low-cost airline operator in the region, this achievement represents a key milestone that reaffirms our commitment to supporting the growth and development of the Kingdom’s aviation sector.  Through our proven economic model and regional expertise, this new partnership will deliver a reliable and value-driven travel experience for passengers and will contribute to economic growth and job creation in the Eastern Province and beyond.

Also commenting on achieving the winning bid, Nesma Group’s President, Mr. Faisal Bin Saleh Al-Turki, and KUN Holding’s CEO, Mr. Mohamed Bin Nabil Hefni, added,

“At Nesma and KUN, we are proud to be part of this ambitious national initiative, which is the result of a strategic partnership with Air Arabia Group.  This initiative aligns with the impressive developments in the Kingdom’s tourism and aviation sectors.  Launching a new low-cost carrier from Dammam is not merely an air transport project, but a direct contribution to strengthening the tourism infrastructure and stimulating the local economy of the Eastern Province.  This includes creating high-quality jobs, empowering national talent, and supporting aviation-related commercial activities.

“We believe this project reflects the private sector’s role in supporting the goals of Saudi Vision 2030 and embodies the spirit of partnership between the public and private sectors to achieve transformative strides in sustainable development.  We look forward to this carrier becoming a model of local and international collaboration, strengthening the Kingdom’s position as a leading regional and global tourism destination.”

The Kingdom of Saudi Arabia’s new LCC plans on operating 24 domestic and 57 international destinations with 45 aircraft by 2030, with the goal of serving approximately 10 million passengers from Dammam and the Eastern Province.  The consortium projects that this project to create over 2,400 direct jobs in the aviation sector, and will significantly contribute to tourism growth and local economic development in the region.

Source: Air Arabia