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Saudi Air Connectivity Program Negotiates with Global Firms to Expand Routes to Kingdom

The Saudi Air Connectivity Program participating at the Routes World 2024 (Asharq Al-Awsat)
The Saudi Air Connectivity Program participating at the Routes World 2024 (Asharq Al-Awsat)
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Saudi Air Connectivity Program Negotiates with Global Firms to Expand Routes to Kingdom

The Saudi Air Connectivity Program participating at the Routes World 2024 (Asharq Al-Awsat)
The Saudi Air Connectivity Program participating at the Routes World 2024 (Asharq Al-Awsat)

The Saudi Air Connectivity Program is meeting with major international transport companies at the Routes World 2024 in Manama, Bahrain.

The goal is to attract these companies to the local market, boosting air routes to 250 destinations and aiming to welcome 150 million visitors by 2030.

The program is participating in the three-day event to highlight services and opportunities for improving air connectivity with Saudi Arabia and reaching international markets.

The Saudi Air Connectivity Program has scheduled over 100 meetings at Routes World 2024 with global aviation leaders to discuss partnerships and showcase Saudi Arabia's strategic location as it seeks to expand international air routes.

Rashed Al-Shammari, the program’s Executive Vice President of Commercial Affairs, shared that discussions took place with airlines from Europe, including Switzerland, Germany, and the UK, as well as companies from China.

They explored opportunities for launching new direct flights to Saudi Arabia.

Adding New Seats

Al-Shammari highlighted that the program met with airline decision-makers to present opportunities for both currently served routes, which aim to expand flights, and underserved routes needing additional flights and seats.

He confirmed that interested companies expressed a desire to enter the Saudi market, but attracting them may take six months to five years, depending on factors like distance, aircraft availability, and profitability, especially following the COVID-19 crisis’s impact on the aviation industry.

Looking forward, Al-Shammari announced that follow-up meetings would focus on persuading airlines to establish new routes to underserved markets or enhance existing services.

Strengthening Partnerships

The program invites interested parties to visit its booth at Routes World 2024, where aviation leaders can learn about opportunities available across Saudi Arabia's 29 airports.

Launched in 2021, the Saudi Air Connectivity Program aims to boost tourism by improving air links between Saudi Arabia and the world through developing existing and new routes.

It works as the executive enabler of the National Tourism Strategy and the National Aviation Strategy to foster collaboration between public and private sectors in tourism and aviation, enhancing Saudi Arabia’s position as a leading global destination.

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BP Abandons Goal to Cut Oil Output, Resets Strategy

The ogo of British Petrol BP is seen at a petrol station in Pienkow, Poland, June 8, 2022 (Reuters)
The ogo of British Petrol BP is seen at a petrol station in Pienkow, Poland, June 8, 2022 (Reuters)
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BP Abandons Goal to Cut Oil Output, Resets Strategy

The ogo of British Petrol BP is seen at a petrol station in Pienkow, Poland, June 8, 2022 (Reuters)
The ogo of British Petrol BP is seen at a petrol station in Pienkow, Poland, June 8, 2022 (Reuters)

BP has abandoned a target to cut oil and gas output by 2030 as CEO Murray Auchincloss scales back the firm's energy transition strategy to regain investor confidence, three sources with knowledge of the matter said.

When unveiled in 2020, BP's strategy was the sector's most ambitious with a pledge to cut output by 40% while rapidly growing renewables by 2030.

BP scaled back the target in February last year to a 25% reduction, which would leave it producing 2 million barrels per day at the end of the decade, as investors focused on near-term returns rather than the energy transition.

The London-listed company is now targeting several new investments in the Middle East and the Gulf of Mexico to boost its oil and gas output, the sources told Reuters.

Auchincloss took the helm in January but has struggled to stem the drop in BP's share price, which has underperformed its rivals so far this year as investors question the company's ability to generate profits under its current strategy.

The company continues to target net zero emissions by 2050.

“As Murray said at the start of year... the direction is the same – but we are going to deliver as a simpler, more focused, and higher value company,” a BP spokesperson said.

Auchincloss will present his updated strategy though in practice BP has already abandoned it, the sources said. It is unclear if BP will provide new production guidance.

Back to the Middle East, the sources said BP is currently in talks to invest in three new projects in Iraq, including one in the Majnoon field.

BP holds a 50% stake in a joint venture operating the giant Rumaila oilfield in the south of the country, where it has been operating for a century.

In August, BP signed an agreement with the Iraqi government to develop and explore the Kirkuk oilfield in the north of the country, which will also include building power plants and solar capacity.

Unlike historic contracts which offered foreign companies razor-thin margins, the new agreements are expected to include a more generous profit-sharing model, sources have told Reuters.

BP is also considering investing in the re-development of fields in Kuwait, the sources added.

In the Gulf of Mexico, BP has announced it will go ahead with the development of Kaskida, a large and complex reservoir, and the company also plans to green light the development of the Tiber field.

It will also weigh acquiring assets in the prolific Permian shale basin to expand its existing US onshore business, the sources said.