CHICAGO, July 9 (Reuters) - Riyadh Air has partnered
with U.S. carrier Delta Air Lines ( DAL ) as the Saudi startup
carrier grows its potential network ahead of launching
commercial operations next year, the airlines said on Tuesday.
Riyadh Air, owned by Saudi sovereign wealth fund PIF, will
be a second national airline, based in the capital Riyadh,
alongside existing flag carrier Saudia, based in Jeddah.
Under the agreement, Atlanta-based Delta will serve as
Riyadh Air's exclusive partner in North America, offering its
customers access to hundreds of U.S. destinations.
For Delta's customers, the partnership will open new
destinations in Saudi Arabia, the airlines said. The U.S.
carrier also plans to launch future nonstop service to Riyadh.
Currently, no U.S. airline files to Saudi Arabia.
Delta's first partnership with a Gulf carrier marks a
shift from the last decade when the Atlanta-based airline along
with United and American Airlines ( AAL ) lobbied to
curb competition from Gulf state carriers.
In 2022, however, United unveiled a codeshare agreement
with Dubai's Emirates. American Airlines ( AAL ) has a similar
arrangement with Qatar Airways.
The tie-up between Delta and Riyadh Air envisions
codesharing, which will allow them to sell seats on each other's
flights, but will require regulatory approvals.
In the future, the two carriers plan to expand the
partnership into a joint venture, allowing collaboration on
network planning. Such an arrangement would require immunity
from antitrust laws.
Currently, Delta has joint ventures with Air France-KLM
, British airline Virgin Atlantic, Chile's LATAM
Airlines and Korean Air.
Riyadh Air is trying to build its network through a series
of bilateral partnerships and code shares rather than relying
purely on its own planes, or joining a formal airline alliance.
Last month, it announced partnerships with Singapore
Airlines and Air China.