Saudi Arabia creates low cost airline

Saudi Arabian Airlines (Saudia) has established a new airline company to provide low cost air transport, according to the Saudi Press Agency.

The Saudi Arabian low-cost carrier, called Flyadeal, will begin operations from the middle of next year, Saudia chief Saleh Al Jasser said.

Flyadeal will operate independently of its parent firm, Al Jasser was quoted as saying.

Al Jasser also added the airline's ticket prices are still the lowest despite the US $ 8 (SR30) increase in airfares.

The establishment of Flyadeal comes following news that six out of the top ten brands with the most development currently underway throughout the Kingdom of Saudi Arabia are classed as mid-market. 

According to a report from Top Hotel Projects, new mid-market developments in the Kingdom include Park Inn by Radisson (1,433 rooms); Hilton Garden Inn (1,155 rooms); Four Points by Sheraton (1,890 rooms); Aloft Hotels (627 rooms); Mercure (528 rooms); and Staybridge Suites (538 rooms).

In June 2015 Saudia Arabia ordered 50 passenger planes from Airbus with a total catalogue value of some $8.0 billion. (SR30 billion).