Industry observers note that Riyadh Air’s entry into commercial aviation could affect competition in the Middle East, where airlines such as Emirates, Qatar Airways, and Etihad Airways have established significant market presence. While limited aircraft supply may constrain immediate growth, continued deliveries of Boeing 787s are expected to increase competitive pressure on these carriers over time.

Riyadh Air also intends to compete for premium travel demand by offering new routes and service options aimed at corporate travelers and those flying between the Middle East and global business centers. Its expansion strategy includes financing through sukuk, sustainability-linked debt instruments, and sale-leaseback agreements with lessors. Increased competition at slot-limited airports like London Heathrow could prompt competitors to adjust their capacity or loyalty programs.

Manufacturers and lessors are expected to benefit from heightened regional demand as Riyadh Air implements its growth strategy. As Douglas noted: “At the end of the day, Riyadh Air is a dynamic long-haul carrier with big plans for global expansion.”

He added: “The carrier was founded and financially supported by the Saudi government through its principal sovereign wealth fund.”

“This demonstrates that there is undoubtedly a key element of the airline's growth and expansion picture that is driven by political motivations,” said Douglas.

“Few are as interested as Riyadh Air is in the continued growth of premium traffic.”

“The carrier is likely to be one of the first true airlines for the 2020s, which is doubling down on premium traffic. The airline has a big expansion plan and a limited time frame,” he concluded.