Saudi Arabia is planning to establish a very well funded new airline to rival major gulf airliners.
Crown Prince Mohammed bin Salman mentioned earlier this week his plans to make Saudi Arabia the world's fifth-biggest transit hub.
"Commercial competition in the aviation industry has always been fierce, and regional competition is heating up. Some turbulence in regional relations is on the horizon," said Robert Mogielnicki, resident scholar at the Arab Gulf States Institute.
Saudi Arabia has massive ambitions aiming for 100 million visitors to the nation by 2030. The country saw 40 million visitors in 2019.
The new airline will become a direct competitor to bigger gulf carriers like Emirates, Etihad, and Qatar Airways.
Although airlines have been struggling in recent months with the pandemic; Emirates reported a record $5.5 billion annual loss last month and Etihad Airlines is scaling down expansion and is restructuring the airline to manage finances.