Skift Travel News Blog

Saudi Arabian low-cost carrier Flynas has hired Goldman Sachs Group, Morgan Stanley and Saudi Fransi Capital for a potential initial public offering on the Saudi Exchange (Tadawul), according to a Bloomberg report.

Flynas expects to go public next year. Earlier reports had suggested that Saudi Arabian sovereign wealth fund — Public Investment Fund (PIF) had been in talks to buy a stake in Flynas.  

This week, the airline announced taking delivery of three Airbus A320neo aircraft, further upscaling its fleet to 63 aircraft.

The airline has an ambitious expansion plan under the objective of connecting the world to the Kingdom, and in parallel with the objectives of Saudi Arabia’s National Civil Aviation Strategy to increase the number of international destinations linked to the Kingdom to 250.

With the latest deliveries, Flynas has more than doubled the size of its all-Airbus fleet by more than 100% in less than two years, increasing its A320neo aircraft by more than 73% to 46 aircraft. The fleet also has four A330 wide-body aircraft.

The airline signed a $3.7 billion agreement with Airbus for 30 new A320neo aircraft this June, as part of an order of 120 Airbus aircraft and approval to increase new orders to 250.

On December 1, the airline launched its newest operation base at Prince Mohammed bin Abdulaziz International Airport in Madinah with flights to 4 international destinations — Dubai, Amman, Istanbul and Ankara as well as two domestic flights to Abha and Tabuk.

Flynas now flies to a total of 10 destinations from its Madinah base, including Riyadh, Jeddah, Dammam and Cairo.

Since its inception in 2007, Flynas connects over 70 domestic and international destinations, operating a schedule of more than 1,500 weekly flights. The airline aims to expand its reach further, targeting a network that spans 165 destinations in total.

Saudi Arabia’s sovereign wealth fund will acquire a 10% stake in Heathrow Airport, the busiest airport in Europe. Saudi is buying the share off of Ferrovial of Spain, while Paris-based Ardian will acquire 15 percent in a deal worth £2.37 billion ($3 billion) The deal is being made by the Public Investment Fund, known as PIF, which is chaired by the kingdom’s crown prince.

Ferrovial has owned its stake since 2006. The new deal is still subject to regulatory conditions

Heathrow’s parent company TGP Topco has various different owners, including other sovereign wealth funds in the Middle East. Here’s what the ownership looks like:

• Qatar Investment Authority: 20%
• Ardian: 15%
• Caisse de dépôt et placement du Québec: 13%
• GIC: 11%
• Australian Retirement Trust: 11%
• PIF: 10%
• China Investment Corporation: 10%
• Universities Superannuation Scheme: 10%

Heathrow regained its top spot as the busiest airport in western Europe last year, after sliding down the rankings during the COVID-19 pandemic. The number of passengers at the London airport has been on the rise. Between January and the end of September, Heathrow’s terminals saw 59.4 million passengers, an increase from 44.2 million during the same period in 2022.

This year, the airport has been experiencing financial losses due to substantial debt, influenced by sharp increases in borrowing costs. Losses in the first nine months of this year were £19 million (approximately $24.1 million), down from £442 million (approximately $561.5 million) in the same period in 2022.

The airport still has more than £14 billion (approximately $17.7 billion) in debt.

Saudi Arabia’s ambitious mega-development Neom continues to announce small boutique hotels. With more than half a trillion dollars at its disposal, Neom could build the biggest hotels in the world, but, for now, is opting to unveil properties no more than 100 keys in size.

Siranna is the latest. A 65-room hotel with 35 residences attached as well. It will also have a beach club, a “sunset terrace,” and a string of high-end restaurants. It joins two other futuristic hotel projects within the surrounding Gulf of Aqaba region, including Epicon and Leyja. All three projects maintain a focus on integrating themselves with nature and disconnecting guests from the noise of modern life.

To this end, architects involved in Siranna say they have drawn inspiration from the architecture of the ancient world.

No opening date, operator or price tag was announced with Siranna, as is the norm with Neom. Thus far, we know that Leyja will be operated by barefoot luxury brand Habitas, which received a $400 million investment from the Saudi government earlier this year.

Neom’s Potential Boutique Hotel Collection

Earlier this month, Skift reported that Neom had trademarked a dozen terms under the “hotel services” category, suggesting a big push into hospitality by the Saudi giga-project. These trademarks included Epicon and Leyja, as well as Siranna, which is now confirmed this week.

You can see all the other trademarks here.

Leyja Hotels At Neom

Saudi’s Leyja project announced last month comprises three hotels with 40 keys each in the mountain area near the Gulf of Aqaba. Habitas has been confirmed as the operator, and its founder and CEO has promised he will create something people will flock to.

“Human connection is at the core of our brand and ethos,” said Habitas CEO Oliver Ripley, during a virtual press conference in the metaverse. “We want to send guests on a transformative journey and they are invited to attend a welcome ceremony. Really, the essence is about reconnecting with themselves, their loved ones and with new friends and people. It’s all about human connection.”

Epicon Hotels At Neom

The plan for Epicon, situated along the Gulf of Aqaba coastline, comprises a select few hotels and restaurants, including two towers – one standing at 225 meters and the other soaring to 275 meters. These towers will host an “ultra-premium” 41-key hotel and 14 suites and apartments constituting luxury residences. Near the hotel, the Epicon resort offers 120 rooms and 45 residential beach villas. Neom has not disclosed the opening date or development cost. In addition to the accommodations, Epicon will encompass beach clubs, lounges, restaurants, and boutique shops.

Six Senses Southern Dunes, the Red Sea has officially opened in Saudi Arabia.

The Foster + Partners designed resort features 36 guest rooms and 40 pool villas that have been strategically placed to embrace the expansive views of the surrounding Arabian Desert.

According to Six Senses, the architecture and landscaping of the resort has been designed to ‘reflect the harmonious coexistence between Nabataean cultural roots and contemporary amenities,’ with the interiors reflecting the ‘tones and textures of the sandy dunes and soft furnishings drawing from the rich colors and patterns of traditional Bedouin tribal dress.’

Six Senses Southern Dunes, The Red Sea also aims to be the first LEED Platinum resort in Saudi Arabia, through a number of initiatives including electricity produced at a dedicated solar farm, a plastic-free policy, and chef’s garden for growing produce.

“Everything we’re doing here reflects our unwavering commitment to sustainability and cultural preservation, while also pushing the boundaries of adventure and wellness. This part of the world holds much intrigue for visitors and immense potential for regenerative tourism. We aim to showcase the unique beauty and cultural richness of this region, while promoting sustainable tourism practices that contribute to economic growth and heritage conservation,” said Fredrik Blomqvist, general manager of Six Senses Southern Dunes, The Red Sea in a press release.

Red Sea Global, a company fully owned by Saudi Arabia’s Public Investment Fund, is exploring the possibility of a public market offering, with plans to launch as early as 2026.

The company is currently examining various options for a public market event, including an initial public offering or the establishment of a real estate investment trust (REIT), CEO of Red Sea Global, John Pagano, stated in an interview with Bloomberg.

Even as he did not provide specifics on advisers, banks, or valuation, Pagano said the company is currently holding preliminary discussions with banks and stakeholders.

He said the company plans to go public by 2026 or 2027, after the hotels have been in operation for around two years, with a proven record of occupancy, cash flow, and profitability. The priority for the company now is to create a revenue stream that supports its value.

Pagano said the concept of public real estate companies has mostly disappeared from a property markets standpoint on a global scale. Instead, real estate investment funds are becoming increasingly popular because of their tax efficiency and accessibility to a wider range of investors.

Flagship Projects for Saudi Arabia’s Vision 2030

Red Sea Global was formed by merging two state-controlled developers by the Saudi sovereign wealth fund in 2021, where Amaala was taken over by the Red Sea Development Company.

Formerly known as The Red Sea Development Company, Saudi Arabia’s flagship tourism project developer rebranded to Red Sea Global last year.

Speaking to Skift earlier, Pagano had called the Red Sea Project and Amaala, the flagship projects for Saudi Arabia’s Vision 2030. He said the developments would be instrumental in opening the country up to global visitors.

By 2030, the two projects are expected to create 120,000 jobs — 70,000 direct and 50,000 indirect.

Amaala is expected to span over 4,000 square kilometers and house 25 hotels and around 900 luxury residential villas, apartments, and estate homes upon its completion in 2027.

The first phase of development is anticipated to conclude in mid-2024 and offer over 1,300 hotel rooms across eight resorts.

During the Skift Global Forum East in Dubai last year, Nicholas King, the group chief development officer of Red Sea Global, had revealed that the first three hotels at the Red Sea Project would open in 2023, followed by the next 13 in 2024.

American Express Global Business Travel has partnered with Emirates Group-owned dnata to offer its global clients more local expertise in the Middle East region.

The agency has signed a “preferred travel partner agreement” with Dubai-based dnata Travel Management. It will provide full end-to-end travel and meetings management services to Amex GBT’s customers, the company said.

Dnata Travel Management is part of the dnata Travel Group, which is the travel division of dnata, a global air and travel services provider. Amex GBT, and other travel agencies, often establish these types of partnerships with “local travel partners” in countries where they do not have a proprietary operation.

The pair also have some history, as dnata acquired a 23 percent stake in corporate travel agency Hogg Robinson Group in 2008, which was bought by Amex GBT a decade later. Alongside investment firm Boron it was a significant minority shareholder at the time.

The tie-up comes as the Middle East embarks on a number of large scale projects, including Saudi Arabia’s Neom project. The country is eying a 100 million-visitor target per year by 2030. “Saudi has huge ambitions,” the tourism authority’s chief technology officer Choon Yang Quek said during Skift Global Forum earlier this year.

“We look forward to working with Amex GBT and its clients as the region sees strong growth in corporate travel, fuelled by mega-projects and companies that are seeking to expand,” said Rashid Al Awadhi, senior vice president – dnata Travel Group, Middle East and India.

Adnan Kazim, chief commercial officer at Emirates Airline, will be speaking at Skift Global Forum East in Dubai, which takes place December 13-15.

Saudi Arabia’s national flag carrier Saudia announced on Wednesday that it has signed an agreement with German air taxi startup Lilium to purchase 100 jets.

With this purchase Saudia intends to launch new electric point-to-point connections as well as seamless feeder connections to Saudia’s hubs for business class guests, the airline said in a release.

Saudia also expects to support Lilium with the necessary regulatory approval processes in Saudi Arabia for certification of the Lilium jet.

With this Saudia will be the first airline in the Middle East and North Africa region to develop the all-electric vertical take-off and landing (eVTOL) network in the region. The agreement will also help Lilium gain a foothold in the region.

The agreement with Lilium will contribute effectively to spurring sustainable tourism in Saudi using zero-emission aviation, said Ibrahim S Koshy, CEO of Saudia.

“Saudia intends to meet a growing demand for regional air mobility and offer guests a superior on-board experience. The potential for such an airborne transit network is limitless,” Koshy said.

While no timeline has been mentioned for the Saudia order, Lilium’s air taxi is scheduled to enter service in 2025, with production beginning as early as next year.

With orders worth approximately $2 billion, Lilium has already signed deals with Brazilian airline Azul, private jet company NetJets, as well as private jet company Globeair.

Saudi Arabia’s flagship tourism project developer has rebranded to Red Sea Global (RSG) and said it would open three resorts in 2023 and 13 more in 2024, reported Al Arabiya on Tuesday.

Formerly known as The Red Sea Development Company (TRSDC), Red Sea Global has long been working on a project along the Red Sea and Amaala, a resort being constructed on Saudi Arabia’s northwest coast. Both efforts are part of the country’s efforts to diversify its economy by boosting new sectors such as tourism while using renewable energy.

On Tuesday, the developer said its mandate had expanded to oversee up to a dozen projects stretching the length of the Red Sea coast of Saudi Arabia, with the potential to expand beyond the kingdom. It plans to open 16 resorts between now and 2024.

Red Sea Global is a closed joint-stock company owned by the Saudi Public Investment Fund.

Abu Dhabi-based carrier Etihad Airways has got the former boss of Portugal’s national carrier TAP, Antonoaldo Neves, as its new CEO.

Etihad’s earlier boss Tony Douglas had agreed to join RIA — Saudi Arabia’s newest airline. Earlier reports had suggested that global consulting firm Korn Ferry had been looking to find a replacement for Douglas.

Neves’ appointment news comes a day after reports of the Supreme Council for Financial and Economic Affairs transferring full ownership of Etihad Aviation Group to ADQ, an Abu Dhabi-based investment and holding company.

“The transfer complements ADQ’s efforts to realize Abu Dhabi’s vision to strengthen the emirate’s position as a global aviation hub  delivering integrated and competitive aviation services,” a release from the investement company stated on Tuesday.

Earlier this year, Etihad Aviation Group’s ancillary businesses were transitioned into ADQ to create a new integrated aviation support services company.

After the privatisation of TAP in 2015, the airline was renationalized during Covid. As a result of the exit of private shareholder David Neeleman, Neves’ stint with the Portugese carrier came to an end in September 2020.

Soon after his exit from TAP, Neves went on to launch a startup — P2D Travel, which Neves himself describes as “a platform to empower anyone to earn money by selling travel on social networks.”

In August 2021 it had been reported that his startup had received an investment from Point Break Capital, which valued the company at over $12.7 million.

Jumeirah Group said Wednesday it hired Katerina Giannouka, a top executive for Radisson in Asia, as its new CEO. The announcement was made by Dubai Holding, a global investment firm owned by the ruler of Dubai for which Jumeirah is part of.

Giannouka, who will be taking over as the CEO in December, succeeds Jose Silva as the fifth CEO of Jumeirah. She joins Jumeirah from Radisson Hotel Group, where she serves as president of Asia Pacific. Prior to this, she led the Asia-Pacific and China development team of Rosewood Hotels & Resorts.

In an internal email sent last week, Silva had announced his decision to step down. Chief operating officer Thomas Meier had been named the interim CEO.

“Given Katerina’s (Giannouka) impressive track record as a transformative business leader, as well as her luxury hospitality background and drive to create resilient teams and culture, I am confident that she will build on Jumeirah’s incredible success story and lead the business to new levels of sustainable and accelerated growth across the world,” Amit Kaushal, Group CEO of Dubai Holding said in a press statement.

Giannouka said she’s keen to unlock the potential of the Jumeirah brand and sustainably secure its position on the world stage as the “top luxury Emirati hospitality brand recognised and sought-after globally.”

Jumeirah Group, a global luxury hotel company, which operates a 6,500-key portfolio of 25 luxury properties across the Middle East, Europe and Asia, opened new resorts in Bali and Muscat earlier this year. The group will also be opening more properties in Bahrain and Saudi Arabia in the coming months.