Media365
Riyadh Air will launch flights to Mumbai starting August 04, its first destination in India, as it expands after receiving its own line-fit aircraft. Mumbai will be the tenth destination in its network. The airline will operate daily service between Riyadh and Mumbai, with bookings already open. The airline will deploy the 787-9 Dreamliner on the route, the only type it currently has in its fleet. Riyadh Air has placed daily orders of 350-1000, as well as for the A321neo.
The airline, which was to be the newest sensation in the world of aviation, was impacted by the delay in deliveries of Dreamliners and ended up operating to London Heathrow to protect its slots without having the flights open for the common public. The carrier is led by Tony Douglas, who has led Etihad in the past, while it is owned by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF).
The airline will arrive in Mumbai at 2035 hours from Riyadh after departing at 1405 hours local time and fly back to Riyadh at 2205 hours from Mumbai, reaching Riyadh at 2350 hours local time. The airline has publicly declared its goal of connecting guests to over 100 destinations worldwide by 2030. The flight will start providing onward connectivity to Europe and the Middle East, though the connection times aren’t the most optimum with just one frequency. The routes to Saudi Arabia have traditionally been deemed labour-traffic-centric routes.
Over the years, Saudi Arabia is trying hard to change its image and be a powerhouse in the region on multiple fronts, akin to Dubai or Abu Dhabi in the UAE. Saudia has traditionally been the major carrier between India and Saudi Arabia, but the focus of traffic between these two countries was largely the working class.
In the last few years, new carriers and Saudia’s network and fleet transformation have both led to the airline actively chasing the Indian transfer passengers. The change of image in the minds of people has also contributed positively. A discussion on Saudi transit options often boils down to serving alcohol in flight, and even the premium positioning of Riyadh Air does not change that for the kingdom of Saudi Arabia. Riyadh Air will not serve alcohol on its flight, and that becomes the criteria; Etihad, Emirates and Qatar Airways have the back of the passengers.
With Riyadh Air, the pitch is around the business engagements, attractions and economic landscape, similar to the pitch Dubai and Abu Dhabi had two decades ago. Riyadh Air is also positioning its service to attract passengers. The airlines’ Dreamliners are configured with four classes, Business Elite, Business, Premium Economy and Economy, with a focus on amenities and soft products.
A challenge to Emirates and Etihad?
The biggest asset when it comes to international operations is the “Bilateral Air Services Agreement” (BASA), and Saudi Arabia is the only country which has a significant seat to its quota which can compete with Dubai or Abu Dhabi, with whom India has separate agreements. Emirates and FlyDubai operate a little over 66,000 seats per week between Dubai and points in India allowed under the BASA.
The BASA between Saudi Arabia and India allows over 50,000 seats per week, and it is one of the few countries where the Indian carriers have had an upper hand in utilisation.
Data shared by Cirium, an aviation analytics company, shows that Indian carriers are deploying over 52,000 seats each week between India and Saudi Arabia in July, while the Saudi Arabian carriers deploy only 16,872 seats per week, which will marginally go up when Riyadh Air launches flights. This means that Riyadh Air has the ability to scale up quickly, unlike Emirates or Qatar Airways, who can’t scale up without a revision to the air services agreement, which has been hard to come by.
Emirates operates five daily services to Mumbai and four to Delhi. Over the years, it has premiumised its offerings as well as fares due to its positioning and lack of additional seats on offer. Riyadh Air, thus, has the opportunity to challenge the status quo as it aims to rely on the same traffic which Emirates, Etihad and Qatar Airways have been catering to for years. With the ambition of over 90 new destinations to start in the next four years, the expansion would have to be on both sides of its hub, Riyadh.
What comes next for Riyadh Air?
It would need more frequencies at Mumbai to ensure competitive layovers for passengers before venturing out to Delhi and beyond, the next obvious destinations in the country. Over a period of time, will Riyadh Air get preferential treatment from the Saudi side as it adjusts the allocation of seats between various carriers? For passengers, the competition could (finally) mean competitive airfares and a reason to say Cheers, albeit without the alcohol when flying Riyadh Air.
