Skift Travel News Blog

American Express Global Business Travel has partnered with Emirates Group-owned dnata to offer its global clients more local expertise in the Middle East region.

The agency has signed a “preferred travel partner agreement” with Dubai-based dnata Travel Management. It will provide full end-to-end travel and meetings management services to Amex GBT’s customers, the company said.

Dnata Travel Management is part of the dnata Travel Group, which is the travel division of dnata, a global air and travel services provider. Amex GBT, and other travel agencies, often establish these types of partnerships with “local travel partners” in countries where they do not have a proprietary operation.

The pair also have some history, as dnata acquired a 23 percent stake in corporate travel agency Hogg Robinson Group in 2008, which was bought by Amex GBT a decade later. Alongside investment firm Boron it was a significant minority shareholder at the time.

The tie-up comes as the Middle East embarks on a number of large scale projects, including Saudi Arabia’s Neom project. The country is eying a 100 million-visitor target per year by 2030. “Saudi has huge ambitions,” the tourism authority’s chief technology officer Choon Yang Quek said during Skift Global Forum earlier this year.

“We look forward to working with Amex GBT and its clients as the region sees strong growth in corporate travel, fuelled by mega-projects and companies that are seeking to expand,” said Rashid Al Awadhi, senior vice president – dnata Travel Group, Middle East and India.

Adnan Kazim, chief commercial officer at Emirates Airline, will be speaking at Skift Global Forum East in Dubai, which takes place December 13-15.

Saudi Arabia’s national flag carrier Saudia announced on Wednesday that it has signed an agreement with German air taxi startup Lilium to purchase 100 jets.

With this purchase Saudia intends to launch new electric point-to-point connections as well as seamless feeder connections to Saudia’s hubs for business class guests, the airline said in a release.

Saudia also expects to support Lilium with the necessary regulatory approval processes in Saudi Arabia for certification of the Lilium jet.

With this Saudia will be the first airline in the Middle East and North Africa region to develop the all-electric vertical take-off and landing (eVTOL) network in the region. The agreement will also help Lilium gain a foothold in the region.

The agreement with Lilium will contribute effectively to spurring sustainable tourism in Saudi using zero-emission aviation, said Ibrahim S Koshy, CEO of Saudia.

“Saudia intends to meet a growing demand for regional air mobility and offer guests a superior on-board experience. The potential for such an airborne transit network is limitless,” Koshy said.

While no timeline has been mentioned for the Saudia order, Lilium’s air taxi is scheduled to enter service in 2025, with production beginning as early as next year.

With orders worth approximately $2 billion, Lilium has already signed deals with Brazilian airline Azul, private jet company NetJets, as well as private jet company Globeair.

Saudi Arabia’s flagship tourism project developer has rebranded to Red Sea Global (RSG) and said it would open three resorts in 2023 and 13 more in 2024, reported Al Arabiya on Tuesday.

Formerly known as The Red Sea Development Company (TRSDC), Red Sea Global has long been working on a project along the Red Sea and Amaala, a resort being constructed on Saudi Arabia’s northwest coast. Both efforts are part of the country’s efforts to diversify its economy by boosting new sectors such as tourism while using renewable energy.

On Tuesday, the developer said its mandate had expanded to oversee up to a dozen projects stretching the length of the Red Sea coast of Saudi Arabia, with the potential to expand beyond the kingdom. It plans to open 16 resorts between now and 2024.

Red Sea Global is a closed joint-stock company owned by the Saudi Public Investment Fund.

Abu Dhabi-based carrier Etihad Airways has got the former boss of Portugal’s national carrier TAP, Antonoaldo Neves, as its new CEO.

Etihad’s earlier boss Tony Douglas had agreed to join RIA — Saudi Arabia’s newest airline. Earlier reports had suggested that global consulting firm Korn Ferry had been looking to find a replacement for Douglas.

Neves’ appointment news comes a day after reports of the Supreme Council for Financial and Economic Affairs transferring full ownership of Etihad Aviation Group to ADQ, an Abu Dhabi-based investment and holding company.

“The transfer complements ADQ’s efforts to realize Abu Dhabi’s vision to strengthen the emirate’s position as a global aviation hub  delivering integrated and competitive aviation services,” a release from the investement company stated on Tuesday.

Earlier this year, Etihad Aviation Group’s ancillary businesses were transitioned into ADQ to create a new integrated aviation support services company.

After the privatisation of TAP in 2015, the airline was renationalized during Covid. As a result of the exit of private shareholder David Neeleman, Neves’ stint with the Portugese carrier came to an end in September 2020.

Soon after his exit from TAP, Neves went on to launch a startup — P2D Travel, which Neves himself describes as “a platform to empower anyone to earn money by selling travel on social networks.”

In August 2021 it had been reported that his startup had received an investment from Point Break Capital, which valued the company at over $12.7 million.

Jumeirah Group said Wednesday it hired Katerina Giannouka, a top executive for Radisson in Asia, as its new CEO. The announcement was made by Dubai Holding, a global investment firm owned by the ruler of Dubai for which Jumeirah is part of.

Giannouka, who will be taking over as the CEO in December, succeeds Jose Silva as the fifth CEO of Jumeirah. She joins Jumeirah from Radisson Hotel Group, where she serves as president of Asia Pacific. Prior to this, she led the Asia-Pacific and China development team of Rosewood Hotels & Resorts.

In an internal email sent last week, Silva had announced his decision to step down. Chief operating officer Thomas Meier had been named the interim CEO.

“Given Katerina’s (Giannouka) impressive track record as a transformative business leader, as well as her luxury hospitality background and drive to create resilient teams and culture, I am confident that she will build on Jumeirah’s incredible success story and lead the business to new levels of sustainable and accelerated growth across the world,” Amit Kaushal, Group CEO of Dubai Holding said in a press statement.

Giannouka said she’s keen to unlock the potential of the Jumeirah brand and sustainably secure its position on the world stage as the “top luxury Emirati hospitality brand recognised and sought-after globally.”

Jumeirah Group, a global luxury hotel company, which operates a 6,500-key portfolio of 25 luxury properties across the Middle East, Europe and Asia, opened new resorts in Bali and Muscat earlier this year. The group will also be opening more properties in Bahrain and Saudi Arabia in the coming months.

Abu Dhabi-based Etihad Airways CEO Tony Douglas has agreed to join RIA — Saudi Arabia’s newest airline, according to reports.

It had been earlier reported that RIA, the multi-billion-dollar international carrier, had approached Douglas for the top job. Douglas has apparently agreed and other senior Etihad executives may follow him, according to Arabian Business.

Global consulting firm Korn Ferry has been tasked with the job to find a replacement for Douglas, the publication added quoting sources.

The head hunting firm is said to be in preliminary talks with three senior aviation names for the top job at Etihad, even though employment offers haven’t yet been made, according to Bloomberg.   

Douglas has been leading Etihad since 2018. He had also served as the CEO of Abu Dhabi Airports Company and Abu Dhabi Ports Company, prior to which he was the chief operating officer and group chief executive designate of UK’s largest privately-owned construction company Laing O’Rourke.

Under Douglas’ leadership, Etihad had reported a record-breaking core operating profit of $296 million for the first half of 2022, despite fuel costs increasing by almost 60 percent compared to the same period in 2021.

“Etihad is emerging from the pandemic stronger than ever, with a world-class fleet, an unmatched customer proposition and sustainability woven into every fibre of our business,” Douglas had said while announcing the financial results.

As Saudi Arabia pivots from its oil-based economy, the tourism sector has been a strong focus for the country that was closed to tourists till 2019.

The introduction of tourist visas in September 2019, was followed by the introduction of electronic tourist visas this month for residents of Gulf Cooperation Council (GCC) countries.

With an ambitious goal to reach 100 million tourists per year by 2030, the kingdom has been hard working to expanding its international air connectivity. 

Riyadh-based RIA will be the second airline for the kingdom, national carrier Saudia operates from Jeddah. Saudi Arabia’s Public Investment Fund has reportedly invested $30 billion to get the airline off the ground. 

Saudi Arabia’s Public Investment Fund has proposed to acquire a 30 percent stake in Riyadh-based travel firm Almosafer — a subsidiary of Seera Group — for $412 million.

As part of the pact, Seera’s destination management company — Discover Saudi and its Hajj and Umrah travel operator — Mawasim will fall under Almosafer.

The Seera Group, in a statement to the Saudi Stock Exchange where it is listed, stated that the capital infusion would be used to scale its inbound, outbound, religious and domestic tourism operations.

The company said this would help to strengthen its credentials as a “national champion of travel and tourism services in Saudi Arabia.”

Almosafer recorded the best quarter in its history for consumer travel bookings for the quarter ending June 30, 2022 exceeding pre-pandemic levels in June 2019 by 27 percent.

The travel company reported a 89 percent growth in gross booking value to $346 million in the second quarter, up from $240 million in the second quarter of 2021. Almosafer’s consumer travel unit achieved its highest ever quarterly gross booking value registering an increase of 175 percent compared to the same period last year.

The company had mentioned in its earnings that Almosafer’s consumer travel segment is on track to achieve $1 billion gross booking value by the end of 2022. 

The Public Investment Fund plays a pivotal role in realizing Vision 2030, Saudi Arabia’s economic transformation program, as it strategises to diversify the national economy and reduce the reliance on oil.

As it seeks to diversify is portfolio, the Public Investment Fund, which manages around $620 billion in assets, had earlier invested $464 million in Google’s parent company Alphabet, around $474 million in Microsoft, $507 million in Zoom and $373 million in Booking Holdings.

Last month, the sovereign wealth fund along with the London-based Cain International announced an investment of $900 million in the Swiss hospitality brand — Aman Group.

Saudi Arabia’s government plans to call its new multi-billion-dollar international airline RIA, according to reports.

The plan is for it to be a premium global superconnector, like Emirates, Qatar and Etihad, as the kingdom continues its ambitious Vision 2030 tourism plan.

It wants to increase the number of air routes from about 100 to 250.

RIA will become Saudi’s second national carrier, based out of Riyadh, with Saudia, which operates from Jeddah, focusing on religious traffic bringing pilgrims to the country’s holy sites, especially during the Hajj pilgrimage.

Budget carriers Flynas and Flyadeal would then concentrate on low-cost domestic and regional travel and near-international routes. It remains unclear if any of the three existing airlines would feed traffic to the new airline.

The kingdom has been working on the launch for the past 12 months, with the new venture backed by Saudi Arabia’s Public Investment Fund, the report added.

Saudi Arabia is also making it easier for millions of tourists to enter the kingdom by streamlining and relaxing its visa options for residents from multiple countries. Overall the country wants to target 30 million international transit passengers by 2030, compared to under 4 million currently.

Europe’s Wizz Air will also land in Saudi Arabia this December.

Saudi Arabia is making it easier for millions of tourists to enter the Kingdom by streamlining and relaxing its visa options for residents from multiple countries, effective September 1.

Residents from Bahrain, Kuwait, Oman, Qatar, and the United Arab Emirates —the Gulf Cooperation Council (GCC) countries— can now apply for electronic tourist visas (eVisas), according to the Ministry of Tourism of Saudi Arabia. 

Residents of the UK, US, and EU can now apply for a visa on arrival. In addition, holders of a v​​alid tourist or business visa to the UK, U.S. or the Schengen area countries will be able to apply for a visa on arrival, provided that the other visa has been used at least once to enter the issuing country. 

Furthermore, potential visitors who meet Saudi Arabia’s visa requirements no longer have to report to their country’s embassy before entering Saudi Arabia. 

“Through harnessing digital innovation and streamlining the traveller journey, Saudi Arabia is welcoming more and more visitors from all corners of the globe,” said Minister of Tourism Ahmed Al Khateeb.

The new visa rules is another step the Kingdom is taking toward achieving its ambitious goal of becoming a top global leisure destination. The Saudi government intends to invest $1 trillion in the tourism sector over the next 10 years. 

“The facilitation of a tourist visa for millions of GCC residents and the visa on arrival extension supports our ambition to welcome 100 million visitors a year by 2030, to the world’s biggest new leisure tourism destination,” said Saudi Tourism Authority CEO Fahd Hamidaddin.

To achieve its ambitions, the Kingdom has been hard working to expanding its international air connectivity. Its goal is to increase the number of direct international flights from 99 to 250 and become a leading Middle Eastern aviation hub. To get there, Saudi Arabia has offered financial incentives to airlines, expanded existing airports, launched a new airline, invested millions and slashed airport fees.

European discounter Wizz Air will land in Saudi Arabia this December with a major expansion under the kingdom’s push to dramatically expand visitor numbers by the end of the decade.

Wizz plans to launch 20 nonstop routes to Dammam, Jeddah, and Riyadh from 11 European gateways, including its Budapest base, Rome and Vienna, between December and April, the airline unveiled Thursday. Its first nonstop flights, between Milan and Jeddah, begin December 3.

“Saudi Arabia is one of the most exciting countries in the world for aviation portraying an eclectic mix of travel opportunities with unmissable destinations, countless exciting attractions, and a thriving cultural scene,” Wizz CEO Jozsef Varadi said. “I see the Kingdom as a long-term strategic market for Wizz Air where we will continue to innovate and carry the flag of low cost flying for the benefit of Saudi residents and visitors as well as the country’s diversifying economy.”

The expansion is part of Saudi Arabia’s Vision 2030 plan that aims to boost visitor numbers to 100 million by the end of the decade. The kingdom plans to invest as much as $1 trillion in the initiative. Part of the plan includes offering airlines financial incentives and subsidies to add flights to Saudi Arabia.

Wizz signed a memorandum of understanding with Saudi Arabian authorities about potential air service in May.