Riyadh Air has unveiled its first cabin interior designs before starting commercial flights later this year, as it seeks to stand out in a market where Gulf airlines are vying to offer premium seats and luxury experiences.
The Saudi Arabian start-up will have a four-class configuration on its Boeing 787-9 planes featuring business elite, business, premium economy and economy cabins, it said.
The 787 Dreamliner, with capacity for 290 passengers, will feature four seats in business elite, 24 in business, 39 in premium economy and 223 economy-class seats.
The premium-economy seats from Recaro are the same model that Emirates has installed, which "most people would say, and I certainly will acknowledge, is the best premium economy out there", Tony Douglas, chief executive of Riyadh Air, told The National. The Saudi airline is hoping to outdo that with its choice of materials and design.
Riyadh Air's "premium-economy cabin is probably better than most business-class cabins in many European and North American carriers", he said.
"Through the art of design, we tried to bring back that glamorous, elevated proposition: if I were to put a persona to this, I wanted it to be the Audrey Hepburn of the sky, that timeless, glamorous cache of how you present elegance."
The airline worked with London-based industrial studio PriestmanGoode on the design, a process that took 18 months to "elevate" passengers' flying experience with a polished look of glamour, refinement and grace, Mr Douglas said, pointing to highlighting the golden age of aviation with Pan Am flights in the 1960s.
If I were to put a persona to this, I wanted it to be the Audrey Hepburn of the sky, that timeless, glamourous cache of how you present elegance
Tony Douglas,
chief executive of Riyadh Air
The premium cabins at the front of the plane try to recreate the "joy, glamour, excitement of flying", he added.
Riyadh Air, which is also considering a second wide-body plane order of either Boeing 777X or Airbus A350-1000 models, plans to introduce a first-class cabin on the extra-wide-body jet at a later stage.
"We're in a campaign at the moment to add a third aircraft type to our fleet ... and we'll end up with an extra-widebody," Mr Douglas said. "In the extra-wide-body aircraft, we will have a first-class product that we think will reset the expectation from first-class."
Riyadh Air in March 2023 placed an order for Boeing 787 wide-bodies, with the first of these to be used for its maiden flight this year. In October 2024, the airline ordered Airbus A321 Neo narrow-body planes to be delivered in the second half of 2026.
The airline is installing the Recaro R3 economy-class seat by German aircraft seat-maker Recaro on its 787s and narrow-bodies, Mr Douglas said.
Cabin features
Boasting privacy panels, lie-flat beds, large high-definition screens, mood lighting and high-speed wi-fi, the opulent business cabins are decked in a colour palette of deep purple, gold and veined stone, all designed to attract well-heeled travellers in a competitive Gulf market of industry heavyweights.
The business elite and business seats, organised in a one-two-one configuration, will feature fully flat beds with a length of 78 inches and width of 22.5 inches. Passengers will have more privacy with a 52-inch-high wall and sliding doors along with adjustable privacy dividers between centre seats.
Premium economy seating, in a two-three-two layout, features a seat pitch of 38 inches and width of 19.2 inches. While the economy cabin, in three-three-three, will have seats with a 31-inch pitch and width of 17.2 inches.
The cabins feature some of the largest touchscreens in the air, with 4K Oled technology, including 32-inch monitors in business elite, the airline said.
Riyadh Air loyalty members will have access to Viasat’s free on-board streaming, social scrolling, web browsing and gaming.
The unifying theme of all cabins is a twisting canopy design inspired by traditional Arabic tents that reflect Saudi Arabia's heritage.
Mr Douglas declined to reveal details about amenity kits, food menus and beverages on-board, which will be revealed later.
'Commercially sustainable' configuration
The design aims to make the most of cabin space, an easier task for Riyadh Air as a "no legacy" airline starting from scratch.
"We want to be financially sustainable so this is how you use real estate efficiently, as opposed to wasting a lot of space, which is where historically first-class went badly wrong for many airlines," Mr Douglas said. "It became a charitable act from a financial standpoint."
He declined to provide the size of investment in the cabin interiors and when the first Boeing 787 delivery is expected. The process for delivery is complicated as the aviation supply chain struggles with bottlenecks and delays.
"It certainly wasn't straightforward and it isn't with any of the seat manufacturers or Boeing or Airbus ... we've got seat schedules now," Mr Douglas said. "They're in production as we speak and we've got delivery schedules on these that correspond with the requirements of Boeing to deliver the aircraft to us."
Riyadh Air's focus on premium cabins comes amid an industry-wide belief that travellers will be more willing to pay for premium seats than they did before the Covid pandemic.
However, the decision to forgo first-class cabins on the 787s was a deliberate one, not unlike many airlines removing theirs before the pandemic. "If we had made these big first-class seats of old, we would have lost two or three rows of seats, and that's the difference between profitability and a loss-maker in commercial aviation," Mr Douglas said.
The focus for the start-up airline is sustainable growth as it seeks to connect to 100 destinations by 2030.
"We've literally analysed the economics to within an inch of its life in terms of how this becomes commercially sustainable against the network we deploy it on and what we believe will be the demand is for the three cabin classes we've got," Mr Douglas said. "That's what go us to this layout plan and we think it's commercially efficient."
The number of seats in the premium cabin is "absolutely the right ratio and I think there's going to be huge demand on this because of the size of the market in Saudi Arabia. I joke with my chief commercial officer that he's probably got the easiest job in the world for the first three or four years because everybody will want to fly in that suite, certainly very proud Saudis but many others as well," Mr Douglas said.
The airline, which is owned by the kingdom's Public Investment Fund, is part of Saudi Arabia's broader plan to attract affluent, high-spending tourists, rather than on mass volumes of travellers, according to Saudi Tourism Minister Ahmed Al Khateeb.
Saudi Arabia plans to become a travel hot spot, ploughing $800 billion in tourism investments to develop the sector and setting a revised target of attracting 150 million visitors by the end of the decade.
Riyadh Air recently received its Air Operator Certificate, took delivery of its first technical spare aircraft, and is set to announce the first of its routes and first flight date in the coming months, it said.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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"A Strange Loop" by Michael R. Jackson
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"Sontag: Her Life and Work" by Benjamin Moser (Ecco/HarperCollins)
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