Startup airline Riyadh Air phases in cargo operations
Riyadh Air, a start-up airline owned by Saudi sovereign wealth fund PIF, has created a cargo division to handle cargo transportation in the lower hold as it prepares to launch flights to the general public this quarter.
The national airline began a daily service between Riyadh and London Heathrow Airport for employees, friends and family in late October, using a leased Boeing 787-9. On Wednesday, Riyadh Air announced that it had started carrying cargo on these passenger flights. Management previously said it needed at least three planes to sell tickets to the public. The company has firm orders for more than 120 aircraft, including 39 787-9s and 25 Airbus A350-1000 wide-bodies.
Riyadh Air said it now carries a wide range of products, including textiles, fresh flowers, seafood, tea and coffee.
International airlines almost universally sell their excess capacity to companies that need to move their products to other facilities or to other customers in other markets.
“Riyadh Cargo has been built with a clear focus on operational discipline, reliability and long-term scalability,” said Pravin Singh, global head of cargo, in a press release. “Launching in a real-world environment allows us to continually test, learn and refine the way we operate, whilst delivering real value to our customers from the outset. Launching the brand is a fundamental step in building a freight business that grows alongside the expansion of our network and supports Saudi Arabia’s wider logistics ambitions.”
Riyadh Cargo said it has adopted a cargo management system from Champ’s that provides centralized control of air waybills, enhanced shipment tracking and decision-making tools capable of supporting future volume and network growth. Shipping containers will be equipped with tracking devices to enable shipment visibility and real-time monitoring so customers can manage product flow.
Last year, Riyadh Cargo contracted Singapore-based SATS to manage cargo transfers at Riyadh’s King Khalid International Airport, with future support extending to Dammam and Jeddah airports.
Riyadh Air has set itself the goal of reaching more than 100 destinations by 2030.
Saudi Arabia has identified tourism and logistics as key areas of its economic diversification strategy in which the government is investing hundreds of billions of dollars. Riyadh Air is being created even though this country of 35 million inhabitants already has Saudia as its national airline.
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Riyadh Air’s Post-Startup Phases in Cargo Operations appeared first on FreightWaves.
