Muhammad Ovais Yousuf, Head of Aviation at the Public Investment Fund (PIF), during a panel discussion at the 2024 Future Aviation Forum. (Image: Facebook)
The official launch of Riyadh Air’s passenger services is “on the horizon”, highlighting the importance of the aviation industry in driving Saudi Arabia’s economic development, with a potential GDP multiplier effect reaching up to four times.
This statement came from Muhammad Ovais Yousuf in a recent interview with Gulf Business, shortly after Riyadh Air declared its first test flight to London.
On Wednesday, Riyadh Air, which is backed by Saudi Arabia’s Public Investment Fund (PIF), announced that it will commence daily flights from Riyadh to London Heathrow starting October 26 as part of its ”path to perfect” initiative, leading up to its full-scale commercial operations.
READ MORE: Riyadh Air’s inaugural flight to London set for October 26
The airline will utilize a Boeing 787-9 Dreamliner, affectionately named Jameela, which will serve as its test aircraft.
Initially, tickets for this route will be restricted to specific passenger groups and employees of Riyadh Air as the airline tests its systems, crew, and service protocols. This London route is part of a testing phase prior to the commencement of commercial operations with its own Boeing fleet.
Following its London operations, Riyadh Air plans to launch additional flights to Dubai.
“Riyadh Air represents one of our strategic initiatives: not only in terms of investment but also regarding its potential impact. We have been developing this concept for nearly four years, transforming it through meticulous planning—which includes aspects like human resources, fleet, network, and infrastructure,” Ovais stated in his interview with Gulf Business.
“We are nearing our public launch. As with any significant project, initial testing is crucial; akin to a soft opening of a hotel to resolve potential issues. This preliminary phase allows a select group of passengers to experience the service and provide feedback before a full-scale launch.”
The new airline seeks to innovate and distinguish itself in the market, according to Ovais.
“We have two main advantages. First is our market: Riyadh has roughly eight million residents, thus providing a strong domestic demand from day one.“Secondly, we are starting without any legacy systems or outdated technologies. This allows us to create a next-generation airline from scratch.”
He further mentioned that the airline is collaborating with leading aviation technology companies like FLYR to ensure a “seamless, digital-first experience for customers.”
“From the booking process to onboard services, our guests will notice a significant difference. We have also selected three modern aircraft types that we intend to build our fleet around, reducing the need for future fleet changes.”
Moving forward, Riyadh Air is managed by CEO Tony Douglas, who joined from Etihad Airways in March 2023.
Ovais mentioned that with PIF as the major stakeholder, the fund has “excelled in active portfolio management” and ensured that the appropriate personnel and processes have been established.
“Under the current leadership, PIF has developed robust governance structures and operational processes for overseeing significant initiatives like Riyadh Air. When initiating a new venture, we begin with governance: establishing the board, defining the structure, and appointing management that can fulfill the vision of the shareholders.
“Our sector teams supervise setup and ongoing management through these governance frameworks. We closely collaborate with management teams such as Tony’s, learning from their industry expertise while incorporating PIF’s methodologies to expedite progress.”
The role of aviation in Saudi Arabia’s economy
The PIF manages over $925 billion in assets, with a diverse portfolio of over 220 companies across 13 sectors. It is estimated to have generated over 1.1 million jobs, both directly and indirectly, within Saudi Arabia and globally.
The fund sees aviation as pivotal in unlocking economic potential within the region’s largest economy.
“Aviation serves as a vital catalyst for GDP growth and job creation. It directly supports various sectors within PIF — from tourism and industry to entertainment and logistics — by facilitating global connectivity,” Ovais explained.
“A robust aviation sector is essential for driving economic progression. Comprehensive airport infrastructure, maintenance facilities, and airline capacity are critical to the success of Saudi Arabia’s Vision 2030.”
As Saudi Arabia positions itself as a key tourism destination — set to host the FIFA World Cup 2034 and World Expo 2030 — Riyadh Air is anticipated to play a pivotal role in attracting tourists to the Kingdom.
READ MORE: 10 visual representations of Saudi Arabia’s Vision 2030 progress
Since the opening of its tourism sector, the aviation industry in the Kingdom has experienced notable growth.
“Even prior to these major projects coming to fruition, growth has been significant. In 2019, Riyadh Airport accommodated around 26 million passengers; by 2024, that figure is projected to soar to 37 million, reflecting a 40% increase. Just think of the potential growth once these projects are fully operational,” said Ovais.
PIF’s broader aviation strategy
Riyadh Air is just one component of the PIF’s overarching strategy to align with Saudi Arabia’s National Aviation Strategy. The fund has structured its aviation initiatives around four key pillars: commercial aviation, general aviation, aviation services, and infrastructure.
Within commercial aviation, Riyadh Air is joined by other significant entities.
For general aviation, the PIF oversees a portfolio of business jets and helicopters, managing around 30 business jets and more than 60 helicopters serving diverse sectors.
In terms of aviation services, its flagship initiative is AviLease, an aircraft leasing company launched in 2022 with about $7.5 billion in assets under management, making it one of the world’s largest aircraft lessors with around 200 aircraft serving 45 airline clients globally.
The PIF is also investing heavily in maintenance, repair, and overhaul (MRO) capabilities through partnerships with Saudia. Infrastructure development remains a key area of investment as well.
“Our aviation strategy aligns with the national strategy: building and investing in assets that further the national agenda while providing sustainable returns for PIF,” Ovais concluded.