Riyadh Air — 72 Boeing 787s, Tony Douglas, and PIF's Bid to Build a Global Airline from Scratch

Riyadh Air — Building a World-Class Airline on a Timeline That Defies Industry Convention

Riyadh Air is the most ambitious airline launch in modern aviation history. Backed by PIF, led by former Etihad Airways CEO Tony Douglas, and equipped with a fleet order of 72 Boeing 787 Dreamliners (with options for more), Riyadh Air is designed to transform the Saudi capital into a global aviation hub that connects Asia, Europe, Africa, and the Americas through Riyadh — a geographic position that gives the airline access to over 6 billion people within an 8-hour flight radius.

The airline was announced by Crown Prince Mohammed bin Salman in March 2023 and has been building toward commercial operations at a pace that has surprised the aviation industry. Traditional airline startups take years of planning, regulatory approval, fleet acquisition, workforce recruitment, route development, and system integration before their first revenue flights. Riyadh Air has compressed this timeline dramatically, leveraging PIF’s financial backing, Saudi Arabia’s regulatory flexibility, and the urgency created by Expo 2030 to move from announcement to operations in a fraction of the time that industry precedent would suggest.

The Strategic Rationale

Riyadh Air exists to solve a specific strategic problem: Saudi Arabia’s aviation capacity is insufficient for Vision 2030’s tourism, business, and connectivity ambitions. The Kingdom targets 150 million annual visits by 2030, plans to host 30+ million Expo 2030 visitors, and aims to establish Riyadh as a global business hub. Achieving these goals requires dramatically more airline capacity — both inbound international flights and connecting traffic that uses Riyadh as a transfer hub.

Saudi Arabia’s existing flag carrier, Saudia (Saudi Arabian Airlines), is a capable but traditionally managed airline that has struggled with operational efficiency, service quality, and network development. Rather than restructure Saudia (a politically complex undertaking given the airline’s legacy workforce and institutional inertia), the Saudi leadership chose to create an entirely new airline — unconstrained by legacy systems, union agreements, outdated technology, or institutional culture — that could be built from scratch to world-class standards.

The dual-airline strategy mirrors successful models in other Gulf states. The UAE operates both Emirates (based in Dubai) and Etihad (based in Abu Dhabi) as separate, competitive airlines. Qatar Airways operates as the sole flag carrier from Doha. Saudi Arabia’s approach — Saudia based in Jeddah serving the western region and religious tourism market, Riyadh Air based in the capital serving the business, leisure, and hub-transfer market — creates a complementary system that addresses different market segments and geographic bases.

Tony Douglas and the Leadership Team

The appointment of Tony Douglas as founding CEO sent a clear signal about Riyadh Air’s ambitions. Douglas led Etihad Airways through its restructuring and recovery following a period of massive financial losses, demonstrating the ability to build a premium airline product while maintaining cost discipline. Before Etihad, Douglas held senior positions at Abu Dhabi Airports, the UK Ministry of Defence, and various private sector companies.

Douglas has assembled a leadership team of aviation industry veterans recruited from Emirates, Qatar Airways, British Airways, Singapore Airlines, and other leading carriers. The team brings expertise across network planning, fleet management, revenue management, customer experience, digital technology, and operational execution — the diverse skill set required to build an airline from scratch.

The leadership team’s mandate is explicit: create an airline that competes with the Gulf’s established carriers (Emirates, Qatar Airways, Etihad) on product quality and service while leveraging Riyadh’s geographic position to build a hub that serves both origin-destination traffic (people traveling to and from Saudi Arabia) and sixth-freedom transfer traffic (people connecting through Riyadh between other origin-destination pairs).

The Boeing 787 Dreamliner Fleet

Riyadh Air’s fleet strategy centers on the Boeing 787 Dreamliner, a wide-body twin-engine aircraft optimized for long-haul routes. The airline’s order of 72 Boeing 787s (a combination of 787-9 and 787-10 variants) makes it one of the largest 787 operators in the world and represents a commitment of tens of billions of dollars at list prices (actual prices after negotiation are lower but undisclosed).

The 787 was selected for several strategic reasons. Its range (approximately 14,000 kilometers for the 787-9) enables nonstop flights from Riyadh to virtually any city in Europe, Asia, and Africa and to many destinations in the Americas. Its fuel efficiency (approximately 20 percent better than comparable previous-generation aircraft) reduces operating costs and supports sustainability commitments. Its passenger comfort features (higher cabin pressure, larger windows, improved humidity, reduced noise) create a premium travel experience that differentiates Riyadh Air from competitors operating older aircraft types.

The fleet order’s timing aligns with Boeing’s production schedule, with deliveries expected to ramp through the late 2020s — providing a growing fleet that enables route network expansion in the years leading up to and following Expo 2030. The phased delivery approach also allows Riyadh Air to learn from early operations and refine its product and processes before scaling to full fleet size.

Network Strategy

Riyadh Air’s route network is being designed to exploit the Saudi capital’s geographic advantage. Riyadh sits at the crossroads of three continents — roughly equidistant from London and Mumbai, accessible from both Lagos and Shanghai — making it a natural transfer hub for passengers traveling between Europe and Asia, Europe and Africa, or Asia and Africa.

The initial network is expected to focus on high-demand routes connecting Riyadh to major cities in Europe (London, Paris, Frankfurt, Istanbul), Asia (Mumbai, Delhi, Bangkok, Kuala Lumpur, Singapore), Africa (Cairo, Nairobi, Addis Ababa), and potentially select North American gateways. As the fleet grows, the network will expand to include secondary cities and leisure destinations that serve Saudi Arabia’s outbound tourism market and international visitors’ inbound demand.

The hub-and-spoke model requires investment in Riyadh’s airport infrastructure. King Khalid International Airport is undergoing a massive expansion program to increase passenger capacity from approximately 25 million annual passengers to over 100 million — a fourfold increase that reflects the combined growth expectations of Riyadh Air, Saudia, and other carriers. The airport expansion includes new terminals, additional runways, improved ground transportation connections (including metro service), and commercial facilities that create a premium passenger experience.

Product and Brand

Riyadh Air has positioned itself as a premium full-service carrier that combines the product quality of the best Gulf airlines with distinctive Saudi Arabian design and hospitality elements. The airline’s cabin products — business class suites, premium economy, and economy — are designed to compete with Emirates, Qatar Airways, and Singapore Airlines on comfort, privacy, and in-flight entertainment.

The brand identity, developed with leading design firms, reflects modern Saudi Arabia — sophisticated, confident, and culturally distinctive without being stereotypically traditional. The airline’s livery, cabin design, uniform design, and service protocols are designed to create a travel experience that introduces passengers to Saudi hospitality and culture from the moment they board.

Digital technology is a core product differentiator. Riyadh Air is building its technology systems from scratch, using modern cloud-based platforms rather than the legacy reservation and operations systems that constrain many established airlines. This technology advantage enables personalized service, seamless digital booking and check-in, real-time operational optimization, and data-driven decision-making that older carriers cannot easily replicate.

Financial Model and PIF Backing

Riyadh Air benefits from PIF’s financial support, which provides the capital required for fleet acquisition, infrastructure investment, workforce recruitment, and the operational losses that are inevitable during an airline’s startup phase. The PIF backing gives Riyadh Air a financial cushion that most airline startups lack, enabling the company to invest in premium product quality and network development without the pressure of immediate profitability.

The airline’s financial model targets profitability within a defined timeframe, though specific targets have not been publicly disclosed. Revenue streams include passenger fares (the primary source), ancillary revenue (seat selection, baggage fees, in-flight sales), cargo revenue (the 787’s belly-hold cargo capacity supports air freight operations), and potentially codeshare and partnership revenue as the airline establishes interline agreements with other carriers.

The economics of hub-transfer traffic are critical to the financial model. Transfer passengers — who connect through Riyadh between other origin-destination pairs — provide incremental revenue that fills seats that would otherwise fly empty on origin-destination routes. Building a successful hub requires attracting sufficient transfer traffic to achieve load factors that make routes profitable, which in turn requires competitive scheduling, efficient connections, and a product quality that makes passengers willing to route through Riyadh rather than alternative hubs.

Expo 2030 Catalyst

Expo 2030 provides Riyadh Air with a massive demand catalyst. The event is expected to attract over 30 million visits, many from international markets that will require air travel. Riyadh Air’s launch timing is designed to ensure that the airline is operationally mature and network-extensive by the time the Expo opens, providing the airlift capacity that the event requires.

The Expo also provides a global marketing platform. Millions of visitors experiencing Riyadh Air’s product during their Expo travel will form impressions that influence future travel decisions. A positive Expo travel experience — comfortable flights, efficient connections, Saudi hospitality — could establish Riyadh Air as a preferred carrier for future travel to the Middle East and beyond.

Riyadh Air’s brand will likely be visible throughout the Expo campus and in marketing materials distributed to visitors worldwide. The airline serves as both a practical transportation provider and a brand ambassador for Saudi Arabia’s aviation ambitions.

Competition and Challenges

Riyadh Air enters one of the most competitive aviation markets in the world. Emirates, Qatar Airways, and Etihad have spent decades building global networks, premium products, and brand recognition that Riyadh Air must challenge from a standing start. Turkish Airlines, with its massive Istanbul hub, is another formidable competitor for transfer traffic between Europe, Asia, and Africa.

The competitive challenges include:

Brand Recognition. Travelers and travel agents must be convinced that a brand-new airline offers reliable, high-quality service — a trust that takes years to build through consistent operational performance.

Workforce. Recruiting and training thousands of pilots, cabin crew, engineers, ground handlers, and support staff is a massive undertaking, particularly in a global aviation labor market where experienced professionals are in high demand.

Airport Infrastructure. Riyadh Air’s growth depends on timely completion of King Khalid International Airport’s expansion — delays in airport construction could constrain the airline’s network development.

Hub Economics. Building sixth-freedom transfer traffic requires competitive pricing, convenient connections, and product quality that persuade passengers to choose Riyadh over established hubs. This is difficult when competitors have decades of schedule development, loyalty program depth, and market presence.

Loyalty Program and Customer Retention

Riyadh Air is developing a loyalty program designed from scratch using modern technology — unencumbered by the legacy points systems, complex redemption rules, and outdated technology platforms that constrain many established airline loyalty programs. The program is designed to be digitally native, with seamless integration into the airline’s mobile app, instant earning and redemption, and partnerships with Saudi tourism, hospitality, and retail brands that extend the program’s value beyond air travel.

The loyalty program serves both customer retention and data acquisition purposes. In a competitive market where price-sensitive travelers switch between airlines frequently, a compelling loyalty program creates switching costs that favor Riyadh Air. The data generated by loyalty program interactions — travel preferences, spending patterns, destination choices — enables personalized marketing and service customization that improves the customer experience and increases revenue per passenger.

Riyadh Air is exploring integration of its loyalty program with PIF portfolio companies — hotels, entertainment venues, retail brands, and other travel-related businesses — creating a cross-sector loyalty ecosystem that amplifies the value proposition for members and creates synergies across the PIF portfolio.

Cargo Operations

While primarily a passenger airline, Riyadh Air’s Boeing 787 fleet provides substantial belly-hold cargo capacity that supports air freight operations. Cargo revenue — typically representing 10-15 percent of total airline revenue for full-service carriers — provides an important supplementary revenue stream.

Saudi Arabia’s growing role as a logistics hub, driven by its geographic position between Asia, Europe, and Africa, creates demand for air cargo capacity that Riyadh Air can serve. High-value, time-sensitive goods — electronics, pharmaceuticals, perishable foods, e-commerce parcels — require the speed of air transportation, and Riyadh Air’s expanding route network provides cargo routing options that support Saudi Arabia’s logistics ambitions.

The development of cargo handling infrastructure at King Khalid International Airport, coordinated with the airport expansion program, ensures that Riyadh Air can efficiently process freight alongside passenger operations. Dedicated cargo terminals, cold chain facilities, and customs processing systems are being built to support the growing demand for air logistics through Riyadh.

Training and Workforce Development

Building an airline workforce from scratch requires recruiting and training thousands of professionals across every function: pilots, cabin crew, engineers, dispatchers, ground handlers, reservation agents, marketing professionals, and corporate staff. Riyadh Air has established training partnerships with international aviation training providers and is developing in-house training facilities at Riyadh’s airport complex.

Pilot recruitment and training is particularly critical. Riyadh Air requires hundreds of qualified pilots to operate its growing 787 fleet, and the global pilot shortage creates intense competition for experienced cockpit crew. The airline is pursuing a dual strategy: recruiting experienced pilots from international carriers while developing a cadet pilot program that trains Saudi nationals from ab initio (from the beginning) through to commercial airline operations.

Cabin crew training emphasizes the hospitality and service culture that distinguishes premium airlines. Riyadh Air’s cabin crew program combines safety training (mandatory for all crew), service training (reflecting the airline’s premium positioning), and cultural training (equipping crew to deliver authentic Saudi hospitality while serving culturally diverse international passengers).

Sustainability Commitments

Riyadh Air has emphasized sustainability as a core brand value, leveraging its new-build advantage to adopt the most fuel-efficient aircraft (787), implement paperless operations, use sustainable aviation fuel (SAF) where available, and design ground operations to minimize environmental impact.

The commitment to a 787-only fleet provides an immediate sustainability advantage — the aircraft’s fuel efficiency means lower per-passenger emissions than competitors operating mixed fleets that include older, less efficient aircraft types. As SAF production scales and availability increases, Riyadh Air’s modern fleet will be able to incorporate higher blends of sustainable fuel.

Conclusion

Riyadh Air represents Saudi Arabia’s bet that it can build a world-class airline from scratch and establish Riyadh as a global aviation hub competing with Dubai, Doha, and Istanbul. The combination of PIF backing, experienced leadership, a modern all-787 fleet, and the massive demand catalyst of Expo 2030 provides Riyadh Air with advantages that few airline startups have ever possessed. Whether the airline can translate these advantages into sustained commercial success — against formidable competition in a notoriously difficult industry — will be one of the most closely watched stories in global aviation through the rest of the decade.