Why Riyadh Air won’t join an airline alliance

The Gulf startup says it will prioritise bespoke partners over a global alliance.

By David Flynn, November 14 2024
Why Riyadh Air won’t join an airline alliance

Saudi Arabian flag carrier Riyadh Air sees no future in joining Oneworld, SkyTeam or Star Alliance.

Instead, the ambitious startup – which will begin flying in mid-2025 with a ‘Mercedes Maybach’ 787 business class, and eventually aims to reach over 100 destinations around the world – will rely on collaborating with a bespoke selection of airlines for even greater “global connectivity”, Riyadh Air CEO Tony Douglas tells Executive Traveller.

Douglas’ own take is that sun has set on those large formal airline groupings of OneworldSkyTeam and Star Alliance: “perhaps some of them, others might argue all of them, had their best days a long time ago.”

“Equally, they tend to operate where there’s an inner circle of three or four super-heavyweights, there’s a middle circle, and there's an outer circle,” Douglas explains.

“As a startup, if we join an alliance, at best we start in the outer circle” – certainly not a position in keeping with the game-changing impact Riyadh Air intends to bring to the airline world – “so we don’t see the benefits to be hugely compelling in that regard.”

Instead, Douglas says he is “pursuing a strategy of all-star partners with deep collaboration in key geographies.”

“Those partners are alliance-neutral, they’re probably going to be in different alliances, but we’re choosing the A-listers, and the other people who are knocking on the door now are all the big A-listers because everybody wants a piece of the opportunity that the Kingdom of Saudi Arabia represents.”

As previously reported, Gulf rival Etihad Airways considers joining an alliance “may or may not happen”, with CEO Antonoaldo Neves stating “it’s not in my top three priorities”.

Qatar Airways is of course a member of Oneworld, alongside Royal Jordanian and soon Oman Air, while Riyadh Air sibling Saudia and Lebanon’s Middle East Airlines are both aligned to SkyTeam.

Also read: Riyadh Air confirms A321neo lie-flat business class

Riyadh’s Air partner airline network

Riyadh Air has already inked “strategic partnership” agreements with Air China, China Eastern, Delta Air LinesSingapore Airlines, Turkish Airlines and near-neighbour Egyptair, “because there’s a massive load of traffic between here and Egypt.”

Douglas says he intends to ad “one more (airline) from Northwestern European and one (in the) Indian subcontinent.”

Each of those bilateral alliances will funnel passengers not only to and from each airline’s home country, but also tap into the airline’s extended regional reach: such as Australia and New Zealand, in the case of Singapore Airlines.

“In the early days we certainly won’t have the fleet and maybe not the flow” to fly directly to Australia and New Zealand, Douglas explains.

“So in the early stage of building our network, we’re more likely to put on a ‘thick route’ into Singapore, giving people a wonderful guest experience on Riyadh Air – and with on an RX codeshare ticket, the final leg (to Australia or New Zealand) on an equally incredible product and experience with Singapore Airlines.”

Those flights will include code-sharing under the RX code and reciprocal benefits for frequent flyers – such as lounge access and points earn-and-burn – incouding on Riyadh Air’s yet-to-be-launched rewards program.

Also read:

Riyadh Air’s 787 business class and premium economy – says “the simple answer to that 

Riyadh Air’s 787 business class and premium economy – says “the simple answer to that 

 

 

 

Riyadh Air won’t join an airline alliance

As for joining an airline alliance, Douglas – who also outlined his plans for Riyadh Air’s 787 business class and premium economy – says “the simple answer to that is not any time soon, if indeed forever.”

Douglas’ own take is that sun has set on those large formal airline groupings of Oneworld, SkyTeam and Star Alliance.

“Perhaps some of them, others might argue all of them, had their best days a long time ago.”

“Equally, they tend to operate where there’s an inner circle of three or four super-heavyweights, there’s a middle circle, and there's an outer circle.”

“As a startup, if we join an alliance, at best we start in the outer circle” – certainly not a position in keeping with the game-changing impact Riyadh Air intends to bring to the airline world – “so we don’t see the benefits to be hugely compelling in that regard.”

Instead, Douglas says he is “pursuing a strategy of all-star partners with deep collaboration in key geographies.”

“Those partners are alliance-neutral, they’re probably going to be in different alliances, but we’re choosing the A-listers, and the other people who are knocking on the door now are all the big A-listers because everybody wants a piece of the opportunity that the Kingdom of Saudi Arabia represents.”

As previously reported, Gulf rival Etihad Airways considers joining an alliance “may or may not happen”, with CEO Antonoaldo Neves stating “it’s not in my top three priorities”.

Qatar Airways is of course a member of Oneworld, alongside Royal Jordanian and soon Oman Air, while Riyadh Air sibling Saudia and Lebanon’s Middle East Airlines are both aligned to SkyTeam.

Also read: Where will Riyadh Air fly, and will it be dry?


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