Air Arabia–Nesma–KUN Trio to launch new low-cost carrier in KSA

Sharjah: A consortium of Air Arabia, Nesma Group, and KUN Holding has won the bid from the General Authority of Civil Aviation (GACA) to establish and operate a new national low-cost airline, which will be headquartered at King Fahd International Airport in Dammam.

The airline is poised to significantly improve domestic and international air connectivity for Saudi Arabia’s Eastern Province, contributing to the Kingdom’s ambitious aviation and tourism goals under Vision 2030.

This milestone reflects the shared vision and collaborative strength of the three partners, who aim to create a modern, efficient, and customer-focused airline that meets rising travel demand while stimulating economic and employment growth in the region.

Adel Al Ali, Group CEO of Air Arabia, said, “We are honored by GACA’s confidence in our capabilities. Establishing a national low-cost carrier in Dammam aligns with our commitment to support the Kingdom’s aviation ambitions. With our regional experience and proven low-cost model, we’re confident this partnership will deliver a reliable, value-driven travel experience and generate tangible economic benefits.”

Faisal Bin Saleh Al-Turki, President of Nesma Group, and Mohamed Bin Nabil Hefni, CEO of KUN Holding, echoed the sentiment, highlighting the initiative’s broader impact: “This new carrier is more than an airline—it’s a catalyst for tourism, employment, and commercial development. It demonstrates the private sector’s integral role in realizing Saudi Vision 2030 and underscores the strength of public-private collaboration in driving sustainable progress.”

The airline aims to operate 45 aircraft by 2030, connecting 24 domestic and 57 international destinations, with a goal of serving 10 million passengers annually. In addition to expanding connectivity, the project is expected to create over 2,400 direct jobs in aviation and support wide-ranging economic growth across the Eastern Province.

The initiative is widely seen as a model of regional and international cooperation and is set to play a pivotal role in positioning Saudi Arabia as a global aviation and tourism hub.