Saudi ArabiaMoney & BusinessTravel

Saudi offers airlines incentives to operate unprofitable routes

Saudi Arabia is to offer financial incentives to airlines in exchange for operating unprofitable routes. The incentives are available to any airline, with funding coming from the country’s Public Investment Fund.

The initiative forms part of the government’s Air Connectivity Program in a bid to boost tourist arrivals. The country wants to see over 100 million visitors by 2030, up from a projected 12 million this year.

Under the program, a deal has already been signed with Saudia to operate flights to Zurich and Barcelona. Tourism minister, Ahmed Al Khateeb, confirmed the incentive plans, stating, “The main purpose is to create direct flights to our main target markets. The program will compensate airlines to cover their losses from flying direct flights to these very important hubs for us.”

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