Airlines

Saudi Arabia to launch new airline ‘RIA’ with $30bn war chest to rival Emirates

The Middle Eastern nation is currently making efforts to reduce its dependence on oil revenue and now it is concentrating on establishing other sources of income

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Saudi Arabia is a nation well renowned for its wealth derived from oil. The Middle Eastern nation is currently making efforts to reduce its dependence on oil revenue and now it is concentrating on establishing other sources of income to have a relatively independent economy.

Reports indicate that, in order to increase tourism in the area, the nation suggested launching a new airline in June 2022. Expectations for the debut of a new airline have now been further raised by reports about the carrier’s name, and the new national carrier of the company named called “RIA”.

Once launched, it will become Saudi’s second national carrier, based out of Riyadh. The current Saudia operates from Jeddah. By 2030, Saudi Arabia wants to see 30 million foreign transit travelers, up from just under 4 million at the moment. In order to run over 150 routes across Europe, North America, South America, Africa, and Asia, the new carrier will eventually need to invest $30 billion. Emirates now offers flights to 158 locations in 85 nations.

The new carrier will focus on a number of important global source markets, including Africa and Asia-Pacific. Currently, the Middle East accounts for around 60% of all aviation travel in Saudi Arabia. Africa only accounts for 10% of the global population, with Asia-Pacific accounting for 20%, the source said.

Airlines

Federal Court Imposes $100M Fine on Qantas for “Ghost Flights” Scandal

In a major ruling, the Federal Court has confirmed a hefty A$100 million penalty against Qantas for its involvement in the “ghost flights” scandal. As reported by FlightGlobal.

The court found that Qantas misled consumers by offering and selling tickets for flights that the airline had already decided to cancel. Adding to the controversy, Qantas failed to promptly notify ticket holders about these cancellations.

The penalty follows Qantas’ admission of violating the Australian Consumer Law (ACL). The airline agreed with the Australian Competition and Consumer Commission (ACCC) on the penalty amount, aiming to deter Qantas and other businesses from similar breaches in the future.

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The ACCC emphasized that this substantial fine sends a clear message: misleading customers will lead to serious consequences, regardless of a company’s size. In addition to the penalty, Qantas has committed to paying approximately A$20 million to affected passengers who unknowingly purchased tickets for canceled flights.

This compensation comes on top of any refunds or alternative flight arrangements already provided. ACCC Chair Gina Cass-Gottlieb praised the penalty, underscoring the importance of robust compliance programs red energy qantas in large corporations like Qantas.

She pointed out that Qantas has since made changes to its operating and scheduling procedures to prevent similar issues in the future.