Arabian Travel Market opens amid surge in GCC tourism

The Arabian Travel Market, the region’s biggest tourism event, opened yesterday with promising prospects for the sector, as the Gulf continues to benefit from a rebound in demand after the pandemic.

Dubai recorded an 11 per cent increase in tourist numbers in the first quarter of the year, having hosted 5.1 million international visitors, compared with 4.6 million during the same period last year, data from the emirate’s Department of Economy and Tourism showed.

GCC tourism officials called for the alignment of large events in the region as the bloc gets ready to launch a unified visa.

The GCC visa would be driven by the tourism sector, said Khalid Al Midfa, chairman of Sharjah Commerce and Tourism Development Authority.

Fahd Hamidaddin, chief executive of the Saudi Tourism Authority, said co-ordination of major events could help the GCC attract “globally renowned figures”.

Saudi Arabia’s budget airline Flyadeal is considering placing an order for more single-aisle Airbus aircraft and upgrading its existing order of 50 narrow-body jets, as it seeks to expand its international route network.

Flyadeal, an all-Airbus fleet operator, explores converting its existing order of A320 Neos and A321 Neos to higher specification aircraft, Steven Greenway, the new chief executive of the airline, told The National.

The potential modification will increase the maximum take-off weight, improve the performance of the jet engines and secure the so-called ETOPS certification that allows for longer flights over water.

It is also considering increasing the number of larger A321 Neos in its existing order to deal with capacity constraints at King Khalid International Airport in Riyadh and limited landing slots at congested airports.

Once it finalises decisions about modifications of its current order book, Flyadeal may place a new order for Airbus A320 Neos and A321 Neos, with a decision to be announced in the next two months, Mr Greenway said.

The size of the new jet deal will depend on the modifications it will make to the existing order.

“There might be another order coming this year, we’re still examining that. Also, we have, within the existing order, the ability to modify the specification of the aircraft. We’re looking at both,” Mr Greenway said.

The higher-specification aircraft and a potential new jet order will help Flyadeal to feed more traffic into the long-haul operations of its sister airline Saudia and to get the longer range it needs to serve more international destinations in South Asia and Europe beyond its predominantly domestic network.

“As we continue to mature the model, we’re finding that we still need more aircraft, we need more capability in terms of range,” Mr Greenway said.

“Firstly, we continue to grow and map out what we’re doing vis-a-vis Saudia. And secondly, we’re looking at derivative jets to overcome the shortcomings in particular times of the year for the network that we wish to operate ultimately as we stretch our wings.”

The aircraft payload and range will become important in its fleet decisions as the airline seeks to expand its international route network.

Flyadeal plans to triple its fleet size from 32 to 100 in the next five years. Flyadeal’s order book consists of 30 A320 Neos ordered by Saudia at the Paris Air Show in June 2019 and has since exercised options for 20 more of the single-aisle jets, according to the company. The deliveries will be used to boost the fleet and replace older A320 jets as their lease expires in the next three to four years.

The airline’s expansion plan is in line with Saudi Arabia’s Vision 2030 strategy to diversify its economy away from oil.

State-owned Flyadeal competes with Riyadh-based budget carrier Flynas, which last month confirmed plans to list its shares on the Tadawul stock exchange this year.

Mr Greenway, who took the helm at Flyadeal in January and replaced former chief executive Con Korfiatis, said one of his main priorities is to ensure the airline grows at a sustainable rate as it triples its size by 2030.

One-third of Flyadeal’s order book comprises A321 Neos, which will be delivered from the beginning of 2026, and the remaining are the smaller A320 Neos. Flyadeal’s A320 Neo jets are powered by CFM LEAP-1A engines.

The airline, which is scheduled to take delivery of six aircraft this year, will take its 33rd A320 Neo within the next two weeks.

“Each year from now on, we’ve got more than one aircraft a month coming, and that’s huge. You’ve got to get the crew, have the infrastructure, find routes to do it profitably on – all of this needs to come into play,” Mr Greenway said. The

Each year from now on, we’ve got more than one aircraft a month coming, and that ’s huge

STEVEN GREENWAY Flyadeal chief executive

airline can “easily” raise its network to 100 routes in the next four years with its current jet delivery schedule, he said.

Flyadeal is charting its growth plans as the global aviation industry is grappling with severe supply chain constraints, making it difficult for airlines to strengthen operations to meet continuing demand for travel.

Major aerospace suppliers, aircraft manufacturers and engine makers have struggled to keep up with the rebound in travel after the sharp downturn during the Covid-19 pandemic, which led to job losses and an industry-wide shortage in skilled aviation workers.

Aircraft are in short supply, engine parts are scarce and Covid-related supply chain problems are “incredibly frustrating” as they persist two years after the pandemic, Mr Greenway said. The Flyadeal chief executive will visit Airbus’s headquarters this month to get more clarity about the airline’s jet delivery schedule.

The airline’s 33rd A320 Neo delivery in May is already a month behind schedule and comes after the carrier has already made plans for 11 wetlease jets to cater to Hajj traffic.

Aircraft delays are an industrywide problem and “everyone is in the same boat, trying to get more information from Airbus”, Mr Greenway said.

“In all fairness, Airbus has been quite open with us.”

Flyadeal’s network currently comprises 80 per cent domestic destinations and 20 per cent international routes, which the airline is now planning to split equally.

“The real focus of the aircraft deliveries over the next couple of years will be our international network,” Mr Greenway said. Flyadeal will announce several new international route launches in the second half of this year to cities in southern Europe, India and the GCC.

A single Gulf visa would be a “massive” development in stimulating travel demand, Mr Greenway said.

Flyadeal is also using its narrow-body jets to feed passenger traffic on to the long-haul routes of Saudia through a codeshare agreement.

The airline, which serves five international year-round destinations, will start flights between Riyadh and Dubai’s second hub Al Maktoum International Airport on June 20.

Flyadeal plans to hire about 600 staff this year, taking its workforce to about 1,800 people, up from 1,200 currently, according to Mr Greenway. By the end of 2025, its workforce will swell to 3,000, he said.

The airline operates out of Riyadh, Jeddah and Dammam, and plans to add more bases over the next two years. It is already in “active discussions” with airports but expansion plans are tied to the number of jet deliveries, Mr Greenway said.

Once it builds a fleet of 50 aircraft, Flyadeal will start exploring new bases, as there is room for “a lot more” growth, he said.

The airline has a target to carry 10 million passengers by the end of 2024, up from just over seven million in 2023.

Flyadeal’s load factor, a measure of how well an airline fills available seats, will rise to more than 90 per cent this year, compared with a load factor “in the 80s” last year, according to Mr Greenway.

It also expects to turn a profit in 2024, similar to last year, he said.