Saudia announces 2017 launch of low-cost subsidiary

Saudia’s DG, Saleh bin Nasser Al-Jasser, has announced that the national carrier of Saudi Arabia will be launching a new low-cost carrier by the middle of 2017. The new carrier’s name is understood to be Flyadeal and based on the rendering of a sharklet-equipped Airbus A320 in a video used in conjunction with the announcement, the livery will be a distinct purple and lime green.
While no mention was made of the type or number of aircraft that would be involved, Saudia has placed an order with Airbus in June 2015, for 30 A320ceo aircraft and 20 A330-300 Regional aircraft, making it the launch customer. The latter aircraft would seem a logical choice for Flyadeal to fit in with busy internal Saudia Arabian routes with an economy seating capacity in excess of 400.
The announcement comes amidst a background of long-awaited freeing up of the market which is virtually totally monopolized by Saudia and flynas, both Saudi-based carriers. SaudiGulf Airlines and an offshoot of Qatar Airways, Al Maha Airways, had previously been identified as two airlines who could add greater competition to the Saudi Arabian market, but while they had been approved by the Saudi aviation regulator GACA, they had been hamstrung by lengthy delays in obtaining an operator’s license.
It had been known within the industry that Saudia had been making plans for a low-cost subsidiary for some time, but scepticism exists over the likely success of the venture owing to the fact that this is a dramatic change to the operating procedures and business model of the full-service carrier.