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Delta Air, Riyadh Air unveil strategic partnership
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Delta Air, Riyadh Air unveil strategic partnership
Jul 9, 2024 1:09 PM

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.

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