flynas returns to short-haul flying as Saudi Arabia welcomes Al Maha Airways and SaudiGulf Airlines

Saudi Arabia's flynas is returning to its origins as a regional airline. flynas has ended scheduled long-haul flights, which did not garner enough awareness and were met with a strong competitive response and had a limited schedule. A large number of routes were spread too thin in a short period of time, which quickly accumulated losses. flynas will retain long-haul chartered flying. In 2015 flynas will keep its fleet flat at 24 A320s but seek to boost utilisation from about 10 hours to 12 hours. flynas aims to carry 6 million passengers in 2015, up from 3.5 million in 2013.

Domestic prospects are boosted now that flynas has secured a major victory with regulators who have lifted the fare cap on domestic economy tickets. flynas can charge more for its highest priced seats than Saudia, which receives subsidised fuel and, with an 82.5% load factor, often sells out of seats. Low-risk innovation will occur as flynas seeks more partnerships.

flynas may need to take bolder measures in 2015 if it wants to make a competitive response to the planned entry of two new carriers in Saudi - Al Maha Airways and SaudiGulf - but for now flynas believes the two start-ups will focus on other parts of the Saudi market and not low-cost travel.