Saudi Arabia's General Authority of Civil Aviation (GACA) has granted approval for a new national low-cost carrier (LCC) based in Dammam in the country's Eastern Region. The regulator issued an Air Operator Certificate (AOC) to the new carrier on Monday, September 14, after it completed required checks on safety, security, and operational quality.
The working name of the new budget carrier is Air Arabia Alliance, announced in 2025 after GACA concluded a public competition to launch a new LCC. According to GACA, the competition attracted bids from several LCCs, with Air Arabia Alliance credited with having placed the most competitive offer. The new airline will operate domestic and international flights from King Fahd International Airport (DMM).
The Air Arabia consortium comprises Sharjah-based low-cost carrier Air Arabia, along with Saudi investors Kun Investment Holding and Nesma Group. "Through our value-driven business model, we aim to enhance air connectivity across the UK, particularly in the Eastern Province," said Adel Al Ali, Air Arabia Group CEO.
Initially, the new airline will operate twice-daily flights from its home base in Dammam to Jeddah and Riyadh, while flights to Madinah will run daily. Ultimately, the airline is targeting 24 domestic and 57 international destinations, connecting nearly 10 million passengers annually through Dammam's main international gateway.
With Air Arabia operating an all-Airbus fleet, the new LCC is also expected to operate Airbus A320-family jets, with ambitions to feature up to 45 aircraft, according to ch-aviation. The launch of the carrier in the Eastern Region aligns with the Kingdom's National Transport and Logistics Strategy under Vision 2030.
