Former Yugoslav markets see untapped Saudi potential

All markets in the former Yugoslavia have seen growing demand for flights to Saudi Arabia in the past year, as the Kingdom relaxes its visa entry requirements and opens up to tourism. The Saudi market, which counts over thirty million people, is also seeking new travel opportunities, with the Balkans proving popular with holidaymakers. Bosnia and Herzegovina has capitalised on these trends, with low cost carrier Flynas maintaining year-round operations from both Riyadh and Jeddah to Sarajevo. More recently, the budget carrier commenced seasonal services between Riyadh and Podgorica, with frequencies quickly growing due to strong demand. The airline is now considering introducing flights to Tivat next summer season.

Flynas also planned to launch seasonal operations between Riyadh and Belgrade this summer, requesting slots for flights between May and late September. However, due to staffing shortages, it cancelled the planned service along with several others. Saudi Arabia is one of Belgrade’s largest unserved markets in the Middle East, with Riyadh having the most indirect passengers between the two countries according to the global travel data provider OAG. It is followed by Dammam, Jeddah and Buraidah. Saudi Arabian Airlines had previously offered connections to the Serbian market through its codeshare on Eithad Airways’ service between Abu Dhabi and Belgrade, however, those were dropped once the Emirati carriers discontinued services between the two capitals in 2020.

On the other hand, Dammam saw the most indirect traffic with Croatia, followed by Riyadh and Jeddah. Earlier this year, the Croatian Prime Minister, Andrej Plenković, met with Saudi Arabia's Foreign Minister, where the two expressed their readiness to boost cooperation in tourism and organise a Croatian - Saudi business forum. Saudi carriers have expressed interest in serving the Croatian coast. Riyadh was the most popular Saudi destination to and from Ljubljana, however, indirect traffic flow has been generally low, with a number of unserved Gulf markets from Slovenia well ahead of Saudi Arabia. An obstacle for travel to both Croatia and Slovenia remain visa requirements for Saudi citizens, which have been relaxed by both Montenegro and Bosnia and Herzegovina.

Saudi Arabia has begun offering financial incentives to airlines in exchange for operating unprofitable routes. The incentives are available to any airline, with funding coming from the country’s Public Investment Fund. The initiative forms part of the government’s Air Connectivity Program, which aims to better connect Saudi Arabia with the world, in a bid to boost tourist arrivals. The country wants to see over 100 million visitors by 2030, up from a projected twelve million this year. Under the program, a deal has already been made with Saudia to operate flights to Zurich and Barcelona.

Low cost carrier Wizz Air yesterday announced twenty new routes to Saudi Arabia, to Riyadh, Jeddah and Dammam, from a number of European markets, with the airline to offer over one million seats to the Kingdom next year. Services from nearby Albania, Bulgaria, Romania and Hungary will be launched.

EX-YU Aviation News

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