Muhammad Ovais Yousuf, Head of Aviation at the Public Investment Fund, speaks during a panel discussion at the 2024 Future Aviation Forum.
Riyadh Air is poised to officially launch passenger services in the near future, emphasizing the vital role of the aviation industry in bolstering Saudi Arabia’s economic expansion, which is said to generate up to a fourfold GDP multiplier effect.
This statement was made by Muhammad Ovais Yousuf in an exclusive conversation with a local business publication shortly after Riyadh Air revealed its first test flight to London.
On Wednesday, the airline, which is backed by Saudi Arabia’s Public Investment Fund, announced it will initiate daily flights between Riyadh and London Heathrow starting October 26 as part of its “path to perfect” program ahead of a comprehensive commercial launch.
READ MORE: Riyadh Air to commence first flight to London on October 26
The flights will utilize a Boeing 787-9 Dreamliner, designated as “Jameela,” the airline’s reserve aircraft.
Initially, tickets will be accessible only to selected passenger groups and Riyadh Air employees as a testing phase for operational systems, crew readiness, and customer service procedures. This London service is part of a broader evaluation strategy preceding the official commencement of operations with its own fleet of Boeing aircraft.
Following the London route, Riyadh Air plans to expand its operations with additional flights to Dubai.
“Riyadh Air is a key strategic initiative not only in terms of investment but also considering its overall impact. We’ve been developing this project for nearly four years, evolving from an initial concept into a meticulously planned operation that includes talent acquisition, fleet development, network planning, and infrastructure development,” Ovais stated in his interview.
“We are nearing the public launch phase. As with any significant undertaking, it’s critical to conduct tests first, similar to a hotel’s soft opening, to resolve potential issues. This preliminary phase allows a select group of passengers to interact with our services and provide feedback before we fully open to the public.”
The newest airline in the region aims to innovate and carve out a unique position in the market, according to Ovais.
“There are two primary factors that set us apart. Firstly, our market: Riyadh is home to nearly eight million inhabitants, giving us a strong foundational customer base from the outset. Secondly, we are starting fresh without any legacy systems or outdated technologies, enabling us to establish a next-generation airline from the ground up.”
He further noted the airline’s collaboration with leading aviation technology providers, such as FLYR, to ensure a smooth, digital-first customer experience.
“From the booking process to on-board service, customers will appreciate the differences we implement. We have also selected three modern aircraft platforms to grow with, avoiding the need to change fleets later.”
Riyadh Air is under the leadership of Tony Douglas, who took the helm after his tenure at Etihad Airways, where he served prior to joining the Saudi airline in March 2023.
With the Public Investment Fund as its shareholder, Ovais mentioned that the fund has perfected its approach to active management of portfolios and aimed to establish suitable governance structures and processes.
“Currently, under our leadership, the PIF has developed solid governance frameworks to oversee substantial projects like Riyadh Air. When creating a new entity, governance is our starting point: defining the board’s structure and appointing the right management to fulfill the vision of our shareholders.”
“Our sector teams manage setup and oversee post-launch operations through these governance structures. We collaborate closely with management teams like Tony’s, tapping into their industry expertise while sharing PIF’s methodologies to enhance progress.”
The significance of aviation in Saudi Arabia’s economy
The Public Investment Fund has assets exceeding $925 billion, managing over 220 portfolio companies across 13 sectors. It is estimated to have facilitated over 1.1 million jobs, both directly and indirectly, within Saudi Arabia and globally.
The fund identifies aviation as a decisive factor in unlocking economic opportunities in the region’s largest economy.
“Aviation serves as one of the most significant catalysts for GDP growth and job creation. It directly supports other sectors within the PIF portfolio, including tourism, industry, entertainment, and logistics, by fostering global connectivity,” Ovais explained.
“A thriving aviation sector is essential for economic development. Strong airports, maintenance facilities, and airline capacity are crucial for the advancement of Saudi Arabia’s Vision 2030.”
With Saudi Arabia establishing itself as a major tourist destination and preparing to host the FIFA World Cup 2034 and World Expo 2030, Riyadh Air is expected to play a key role in facilitating visitor access to the Kingdom.
READ MORE: 10 charts showcasing the implementation of Saudi Arabia’s Vision 2030
Since the commencement of the tourism sector’s expansion in Saudi Arabia, the aviation landscape has witnessed robust growth.
“Even before these substantial projects come to fruition, growth has been remarkable. In 2019, Riyadh Airport served approximately 26 million passengers; by 2024, projections indicate this number will rise to 37 million, reflecting a 40 percent increase. The potential for growth once these initiatives are fully operational is immense,” Ovais added.
PIF’s broader aviation initiatives
Riyadh Air is just one segment of the PIF’s comprehensive strategy to align with Saudi Arabia’s National Aviation Strategy. The fund has organized its aviation initiatives around four main pillars: commercial aviation, general aviation, aviation services, and infrastructure development.
In the commercial aviation arena, Riyadh Air operates alongside several other critical entities.
For general aviation, the PIF oversees a portfolio that includes both business jets and helicopters, which collectively operate around 30 business jets and over 60 helicopters servicing various industries.
The aviation services sector is spearheaded by AviLease, a firm that manages approximately $7.5 billion in assets and ranks among the largest aircraft leasing companies globally, with around 200 aircraft leased to 45 airline clients worldwide.
The PIF is also making significant investments in maintenance, repair, and overhaul (MRO) facilities through its partnership with Saudia. Infrastructure investment remains an ongoing focus.
“Our aviation strategy aligns closely with the national strategy: developing and investing in assets that both promote national objectives and yield sustainable returns for the PIF,” Ovais concluded.