Delta partners with new airline Riyadh Air on joint venture

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Delta partners with new airline Riyadh Air on joint venture

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Gary Leff Chief Financial Officer | View from the Wing

By Sky Industry News

Jul 9, 2024

Delta Air Lines and Riyadh Air, which will commence operations next year, have entered into a partnership agreement aimed at enhancing connectivity and premium travel options across North America, the Kingdom of Saudi Arabia, and beyond. This collaboration will enable Delta to initiate services to Riyadh.

The partnership plans include interline and codeshare connectivity, frequent flyer reciprocity, customer experience improvements, digital transformation initiatives, maintenance services, ground handling, and training. The two airlines also intend to explore an anti-trust immunized joint venture for coordinated schedule planning and growth.

Riyadh Air is positioning itself as a premium carrier and brand ambassador for Saudi Arabia. The airline has ordered 39 Boeing 787-9 aircraft with options for 33 more and plans additional orders by next year. By the end of 2025, Riyadh Air aims to serve 10 international destinations and add about two per month over the next five years.

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This partnership represents a significant development for Riyadh Air as it seeks to bring travelers from the U.S. to Saudi Arabia with Delta's assistance in feeding connecting traffic to Riyadh Air's U.S. destinations.

Delta's existing relationship with Saudia through SkyTeam will see changes as Saudia shifts its focus to Jeddah while maintaining some services in Riyadh. According to Riyadh Air representatives: "They still have a relationship with Saudia, but over time Saudia will focus more on Jeddah and we’ll be the partners for Riyadh."

This move comes after Delta previously lobbied against major Gulf airlines due to government backing but now seeks benefits from partnering with a state-backed new airline launch.

The emergence of Riyadh Air is seen as part of Saudi Arabia's broader ambitions to liberalize its society and diversify its economy while retaining certain traditional governance elements.