Saudia, the national airline of Saudi Arabia, has been gradually reducing its flight operations to India over the past few months. This move is surprising given the strong demand and potential for air travel between the two countries. The aviation market between India and Saudi Arabia has long been thriving, characterized by frequent passenger traffic and economic connections.
Impact on Key Indian Cities
The airline’s scaling back of flights has notably impacted cities like Bengaluru, Chennai, and Hyderabad, which have traditionally had strong demand for travel to Saudi Arabia. Bengaluru, for instance, has seen a reduction from daily flights to just four times a week. Similarly, Chennai has faced a drop in services, with Saudia now only operating two weekly flights to Jeddah, a significant cut from its earlier non-stop offerings. These reductions force passengers to rely on other airlines or take inconvenient connecting flights.
Aircraft Downgrades
Saudia has also been downgrading its aircraft. Larger Boeing 777-300ERs have been replaced by smaller Airbus A330-300s, reducing seat availability and further complicating travel for passengers. This downgrade has especially affected cities like Bengaluru, Chennai, and Kochi, which had previously enjoyed more frequent and larger aircraft services.
Reasons for the Reductions
The reasons behind these operational cutbacks remain unclear. One possibility is that low ticket fares in the India-Saudi Arabia market, coupled with the higher operating costs of wide-body aircraft, have made it difficult for Saudia to sustain profitability. The airline’s full-service model, requiring higher passenger loads and fares, may not be suitable for the price-sensitive Indian market.
Riyadh Air: A New Competitor
As Saudia grapples with these challenges, Saudi Arabia’s new airline, Riyadh Air, could soon enter the Indian market. Launched in March 2023, Riyadh Air has ambitious plans to expand globally, including establishing a hub in Riyadh. With a fleet of 99 aircraft, including Airbus A321s and Boeing 787 Dreamliners, the airline is set to compete with both established carriers and low-cost operators on key routes.
Strategic Shifts for Future Success
For Riyadh Air to succeed in India, it will need to develop a strategy that targets high-demand routes from major metro cities such as Delhi, Mumbai, and Bengaluru. By offering competitive prices, superior service, and better connectivity to international destinations, Riyadh Air can carve out a niche for itself in a market dominated by low-cost carriers. However, it will need to balance demand, pricing, and operational costs to ensure long-term success in India’s competitive aviation landscape.
