Delta Air Lines has recently announced a new partnership with Riyadh Air, a startup airline aiming to launch passenger flights between the United States and Saudi Arabia next summer. Riyadh Air, supported by Saudi Arabia’s sovereign-wealth fund, is part of the country’s strategy to diversify its oil-dependent economy and enhance tourism. The specifics of the partnership, such as the commencement of flights or financial arrangements, were not disclosed by Atlanta-based Delta and Riyadh Air. Both airlines clarified that they would not be acquiring ownership stakes in each other.
Delta’s CEO, Ed Bastian, and Riyadh Air’s CEO, Tony Douglas, expressed intentions to engage in codesharing, where they would sell tickets for each other’s flights, subject to approval from the U.S. Transportation Department. The two airlines mentioned the prospect of expanding the partnership into a joint venture, which would necessitate immunity from U.S. antitrust regulations to allow collaboration on pricing and revenue sharing. Bastian mentioned an initial expectation of higher passenger traffic from the United States to Saudi Arabia, citing potential future growth in Saudi tourism.
Currently, no U.S. carrier offers flights to Saudi Arabia, while Saudia, the Saudi flag carrier, provides nonstop services between Saudi Arabia and destinations like New York, Washington, D.C., and Los Angeles. The collaboration between Delta Air Lines and Riyadh Air signifies a significant development in expanding air travel options between the two countries.
