Saudi Arabia may be considering the launch of a new cargo-only airline, according to a Bloomberg report published on August 20, 2024, quoting unnamed sources with knowledge of this project.
Little else is currently known about the initiative, which is reportedly being evaluated by the Public Investment Fund (PIF), the Kingdom’s sovereign wealth fund.
According to the report, PIF is in talks with Airbus and Boeing to secure freighter aircraft for this hypothetical new venture.
The new cargo operator would provide services to the two airlines already owned by PIF, existing national carrier Saudia and soon-to-be-launched Riyadh Air.
By investing in air cargo capacity, Saudi authorities are replicating, in the logistics sector, the strategy they are already pursuing of positioning the country as a major node in the global air travel market, in direct competition with neighboring hubs in the Gulf region.
Saudi Arabia’s Vision 2030 program aims to invest up to US$100 billion in a broad range of aviation and transportation projects, including new airport infrastructure, new airlines and an ambitious plan to pioneer the roll out of advanced air mobility networks in the country.