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Saudia is expected to catch mainly Muslim pilgrims on its way to Saudi Arabia’s holy sites, while Riyadh Air will focus on non-religious traffic, adding foreign passengers in transit.
The move would come with other assets owned by Saudia, one of the Middle East’s oldest airlines, adding its cheap subsidiary, Flyadeal, the sources said.
Bloomberg first reported that PIF was in talks to acquire Saudia. PIF and Saudia declined to comment.
PIF already owns Riyadh Air, the kingdom’s new airline, which is expected to start operations next year. The government aims to turn Saudi Arabia into a major aviation hub, with Riyadh Air in the capital, Riyadh, and Saudia in the Red Sea city. of Jeddah.
Saudia is expected to remain a separate airline from Riyadh Air once its ownership is transferred to the PIF, said the sources, who requested anonymity to discuss the matter as it has yet to be announced.
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Saudi Arabia would basically take care of Muslim pilgrims going to Saudi Arabia’s holy sites. Riyadh Air would deal with non-religious traffic, adding foreign passengers in transit, the resources added.
Saudia membership in the PIF would give the sovereign wealth fund direct oversight and control of the airline’s strategy.
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