Saudi Arabia may be on the verge of launching a new cargo-only airline, according to a recent Bloomberg report published on August 20, 2024.

The report, citing unnamed sources familiar with the matter, suggests that the Kingdom’s Public Investment Fund (PIF) is in active discussions with aerospace giants Airbus and Boeing to secure freighter aircraft for this potential new venture.

The proposed cargo airline is expected to bolster the operations of Saudia, the national carrier of Saudi Arabia, as well as the newly established Riyadh Air. This move aligns with the Kingdom’s ambitious Vision 2030 plan, which aims to transform Saudi Arabia into a leading international logistics hub.

By enhancing both passenger and freight air transport, the plan seeks to attract investment, boost trade, and drive economic development, ultimately providing long-term sustainable benefits for the nation.

Sources indicate that Saudia’s focus will shift towards religious pilgrimages, with its cargo operations likely to be integrated into the new airline. Bloomberg’s report also hints that Saudia’s ownership might be transferred to the PIF as early as 2025.

riyadh air another key element of the Vision 2030 strategy, was established by the PIF to build a robust network capable of competing with regional heavyweights like Emirates and Qatar Airways. Currently, Dubai-based Emirates operates a fleet of 14 freighters, with plans to more than double this number in the coming decade, while qatar airways already boasts a fleet of 28 cargo jets.

The potential launch of a new cargo airline reflects Saudi Arabia’s strategic efforts to capitalize on its geographic position and enhance its role in global logistics. passenger to freighter conversion As the country seeks to diversify its economy and reduce its dependence on oil, the development of a dedicated cargo airline could be a significant step toward achieving these broader goals.