Delta Air Lines announced on Tuesday that it has entered into a partnership with Riyadh Air, a new startup airline, with the plan of operating flights between the US and Saudi Arabia.
Riyadh Air, set to commence passenger services in the summer of next year, is supported by Saudi Arabia’s sovereign-wealth fund and is part of the nation’s strategy to diversify its economy away from oil and increase tourism.
Delta CEO Ed Bastian and Riyadh Air CEO Tony Douglas said they envision selling tickets on each other’s flights — a practice known as codesharing — that requires approval from the US Transportation Department, reported news agency AP.
They said the partnership could grow into a full-blown joint venture. That step would require immunity from US antitrust laws for the carriers to collaborate on prices and share revenue.
This initiative is part of Saudi Vision 2030, which aims to make India the number one source market for tourism. The long-term goal is to welcome 7.5 million Indian travellers by 2030, positioning Saudi Arabia as a premier destination for Indian tourists. All the newly introduced visa options are valid for travellers wishing to perform Umrah, providing more convenience and flexibility for religious tourism.
Bastian said he expects much of the early traffic to be passengers flying to the United States, but that it will even out over time as tourism to Saudi Arabia grows.Bastian anticipated that initially, most of the traffic will consist of passengers traveling to the United States, but he expects it to balance out over time as tourism to Saudi Arabia increases.
Currently, no US airline operates flights to Saudi Arabia. Saudia, the kingdom’s flag carrier, offers direct flights between Saudi Arabia and New York, Dulles International Airport near Washington, D.C., and Los Angeles.
