Dammam, Saudi Arabia: Saudi Arabia has cleared an Air Arabia-led consortium to launch a new national low-cost carrier from Dammam, after the General Authority of Civil Aviation (GACA) issued its Air Operator Certificate (AOC) on 14 September 2026. The airline is scheduled to begin commercial operations from King Fahd International Airport on 20 September, initially connecting Dammam with Riyadh, Jeddah and Medinah.
The carrier was first announced on 20 July 2025, when GACA selected a consortium comprising Air Arabia Group, Nesma Group and KUN Holding to establish and operate a new Saudi-majority-owned low-cost airline. GACA referred to the winning carrier as “Air Arabia Alliance” at the time, while the latest September 2026 releases refer to the consortium and the new carrier without announcing a separate commercial brand name.
The project was selected through a GACA competition involving several low-cost airline proposals and was designed to strengthen air connectivity in Saudi Arabia’s Eastern Province. By 2030, the carrier is targeting 24 domestic and 57 international destinations, a fleet of 45 aircraft and around 10 million passengers annually.
GACA said the Air Operator Certificate (AOC) was granted after the airline completed the required technical and regulatory procedures covering safety, security and operational quality.
Capt. Sulaiman bin Saleh Almuhaimedi, GACA’s Executive Vice President of Aviation Safety and Environmental Sustainability, said the launch would contribute to “enhancing competition and improving performance in the air transport market,” while supporting trade, tourism and local employment in the Eastern Province. GACA also said the project supports Saudi Arabia’s objective of becoming a global logistics and international aviation hub.
The initial operation will consist of twice-daily services between Dammam and Riyadh, twice-daily services between Dammam and Jeddah, and a daily Dammam-Medinah service. Air Arabia Group CEO Adel Al Ali described the launch as a “strategic milestone” for the group and said the consortium’s value-driven model would expand affordable and reliable travel options across the Kingdom. Dammam Airports CEO Mohammed bin Ali Al-Hassany said the launch reflects the airport’s growing position and its partners’ confidence in its operational capabilities.
The long-term expansion is intended to increase capacity and travel options from the Eastern Province while supporting Saudi Arabia’s wider aviation and tourism plans.
The project is expected to create more than 2,400 direct aviation jobs and contribute to economic activity and tourism in Dammam and the wider Eastern Region. GACA and the consortium have also linked the carrier to the Aviation Program under the National Transport and Logistics Strategy and Saudi Vision 2030, with the 81-destination network and 10-million-passenger annual target planned for 2030.
