No Surprise: Air France-KLM & Riyadh Air Launch Partnership

Just recently, Air France resumed flights to Riyadh, representing the carrier’s return to Saudi Arabia. As expected, there’s another aspect to this development…

Air France-KLM & Riyadh Air unveil strategic cooperation plans

Air France-KLM and Riyadh Air have signed a strategic cooperation memorandum of understanding, with the goal of introducing a broad range of benefits for customers traveling between Riyadh, Paris, Amsterdam, and destinations far beyond. As a reminder, Riyadh Air is Saudi Arabia’s ambitious new airline startup, which plans to launch flights in late 2025.

Since Riyadh Air hasn’t launched, exact details of the partnership still have to be ironed out. The plan is to introduce a dynamic partnership, with collaboration that aims to gradually introduce a wide range of benefits for passengers, unlocking new opportunities across Western Europe, North and South America, the Middle East, Asia, and Saudi Arabia.

The partnership will focus on strengthening network connectivity, with both parties working together to maximize connectivity at their three biggest hubs. We can also expect cooperation with reciprocal loyalty rewards, operational support, and lounge access.

Here’s how Air France-KLM CEO Ben Smith describes this new partnership:

“Saudi Arabia is rapidly emerging as a key market for aviation. With our three brands, Air France, KLM and Transavia now serving the country, and with this new agreement with Riyadh Air, we aim to continue increasing our footprint in the region. We look forward to combining our networks and expertise with Riyadh Air, and to offer our mutual customers more choice and convenience. This cooperation is complementary to our SkyTeam partner in the region.”

Meanwhile here’s how Riyadh Air CEO Tony Douglas describes this partnership:

“We are dedicated to connecting Riyadh to the world, and partnering with Air France-KLM – a leader in global aviation, will accelerate bringing to life our vision to deliver exceptional experiences and the realization of our long-term vision: to redefine air travel through innovation, operational excellence, and guest-centric services. This partnership not only strengthens our international network but also reinforces confidence in our growth trajectory and our role in supporting Saudi Arabia’s broader economic diversification goals under Vision 2030.”

Riyadh Air’s partnership strategy is becoming clear

Air France-KLM partnering with Riyadh Air doesn’t come as a surprise. That’s because Delta and Riyadh Air are planning a partnership, and Virgin Atlantic and Riyadh Air are also planning a partnership. So it was a given that Air France-KLM would take the same approach.

Keep in mind that the four airlines have a transatlantic joint venture, and on top of that, Delta owns a (small) stake in Air France-KLM and (a much bigger stake) in Virgin Atlantic. So just as Air France-KLM, Delta, and Virgin Atlantic, are all partnering with IndiGo, it’s also not surprising that they’re taking a similar approach with Riyadh Air. They very much seem to be taking a unified approach to global partnerships.

So, does this mean that Riyadh Air will join SkyTeam? While it’s possible, I don’t think it’s likely. We know that Delta doesn’t really care about alliances, and is much more focused on joint ventures, strategic agreements, and equity partners. So I suspect that will similarly be Riyadh Air’s focus.

Only time will tell how these partnerships evolve. The first challenge with Riyadh Air is that it’s going to be years before we see a material amount of traffic moving between these airlines. After all, growing an airline takes time.

Strategically, though, I’d say this all makes sense. Don’t be surprised if Riyadh Air’s first long haul destinations include London, New York, and Paris, since there will be lots of connectivity there.

The funny angle is also that Saudia belongs to SkyTeam, so partners with Air France-KLM, Delta, and Virgin Atlantic. However, the partnerships aren’t particularly close. Also keep in mind that Riyadh Air and Saudia are more complements than competitors, given that both airlines are more or less government funded.

Bottom line

Air France-KLM and Riyadh Air have announced plans for strategic cooperation. The airlines plan to partner across a variety of fields, including loyalty, passenger experience, and more. Furthermore, Air France has recently resumed flights to Riyadh, meaning all three Air France-KLM Group carriers now fly to Saudi Arabia (that also includes Transavia).

Delta, Air France-KLM, and Virgin Atlantic, are very much taking a unified approach to their strategy, and this reflects that, with all three airline groups now partnering with Riyadh Air. Now we just need to see the airline actually launch!

What do you make of this Air France-KLM & Riyadh Air partnership?