Saudi Arabia’s Riyadh Air Secures $1.3 Billion Credit Facility for 2025 Launch
In a groundbreaking move, Riyadh Air has successfully obtained a $1.3 billion credit facility from a consortium of Gulf banks to support its upcoming launch in 2025. Adam Boukadida, the airline’s chief financial officer, revealed this exciting development during an interview at the Future Investment Initiative in Riyadh.
Strategic Goal to Serve Over 100 Destinations
Riyadh Air, with strong backing from the Kingdom’s Public Investment Fund, aims to expand its reach and serve more than 100 destinations by the end of the decade through strategic partnerships. This ambitious goal is a key driver behind the airline’s corporate finance deal.
Local and Regional Financial Support
Boukadida highlighted that the credit facility involves eight financial institutions, with six being Saudi banks, in addition to Gulf International Bank and Emirates NBD from Dubai. The diverse group of financial partners reflects the strong support for Riyadh Air’s vision and mission.
Future Financial Instruments and Growth Plans
Looking ahead, Riyadh Air plans to explore various financial instruments, such as debt, capital markets, and bonds, to support its growth. The company envisions having 130 aircraft in its fleet over the next five years, requiring innovative financial solutions for sustainable expansion.
Collaboration with Aramco and Focus on Sustainability
An agreement with Aramco, signed during the FII, signals a potential partnership for fuel supply. Boukadida emphasized the importance of making the aviation industry more sustainable and highlighted the challenges of affordability in sustainable aviation fuel.
Digital Transformation and Customer Experience
Embracing digitization, Riyadh Air aims to provide a seamless customer experience akin to leading e-commerce platforms like Amazon. Boukadida emphasized the company’s focus on offering an innovative digital platform for travelers, enhancing convenience and efficiency.