Riyadh Air CEO Makes Some Unbelievable Claims

11 months ago 51

I’ve written extensively about Riyadh Air, Saudi Arabia’s ambitious new airline, which is planning to launch operations in Q2 2025. The airline is part of Saudi Arabia’s goal of greatly boosting tourism to the country, and also of increasingly...

I’ve written extensively about Riyadh Air, Saudi Arabia’s ambitious new airline, which is planning to launch operations in Q2 2025. The airline is part of Saudi Arabia’s goal of greatly boosting tourism to the country, and also of increasingly putting Riyadh on the map as a global business hub.

For a moment, let’s forget the politics of Saudi Arabia, and the question of whether Saudi Arabia can actually become a tourism hotspot. Riyadh Air has done an incredible job hiring talent, and has some brilliant ex-pats at the airline who really know what they’re doing.

Riyadh Air CEO Tony Douglas previously ran Etihad, and as you’d expect, he has quite a task. In addition to leading the airline to launch, he has been on a never-ending press circuit, creating hype around the airline. However, I can’t help but stop for a moment and reflect on some of the stuff he’s saying, because it’s giving me very strong Akbar Al Baker vibes (which is not otherwise his vibe, and it’s also why I’m confused).

Riyadh Air CEO promises the world’s best experience

Tony Douglas recently participated in the Skift Global Forum 2023 in Dubai, and was interviewed about the carrier’s launch plans. Riyadh Air doesn’t plan to have first class, which might surprise some people, given how common bling is in the Middle East.

He was asked if not offering first class was a conscious decision, and he provided the following (reasonable) explanation:

“It was a very conscious decision, and it’s driven by financial sustainability, as well as environmental sustainability. First class on many carriers is a charitable affair. What I mean by that is my father taught me when I was very young that any fool can sell $100 for $50.”

“First class for many international carriers is an egotistical, charitable act, which is not commercially sustainable. It’s $100 for $50, and the reason why is because it’s often 2.5x the real estate of business class, but you don’t sell it for 2.5x the ticket price. So by definition, it’s $100 for $50. We will not do that, because we’re not a registered charity.”

He follows that up by teasing the carrier’s upcoming cabins, which will be revealed in Q2 2024. He then made the following claims about what Riyadh Air has planned for business class, premium economy, and economy:

“Our business — I’d like to think you will conclude — is better than just about anyone’s first class out there” “When you see our premium economy, I’d like to think most of you will conclude that’s better than just about anyone’s business class that you’ll see out there” “Most importantly, when you see our economy, I think you’ll probably conclude that’s better than just about anyone’s premium economy out there”

He went on to draw parallels between the carrier’s livery and inflight product. He explains how Riyadh Air’s livery “looks more like a billionaire’s G700 than a regular commercial aviation livery,” and that a similar theme will continue within the aircraft.

I do love Riyadh Air’s livery!

He then adds how the airline “won’t have cabin crew uniforms either,” but rather Riyadh Air will “have cabin crew fashion, and wait till you see the fashion that we have.”

You can watch the interview for yourself below. The part mentioned above starts at roughly the 15-minute mark.

I can appreciate wanting to create hype, but…

I can of course appreciate the value in building brand awareness before a company launches operations, and wanting to create intrigue. We see more of this than ever before, with every company creating a “waitlist” before launch for “early access” to something that ostensibly isn’t in terribly limited supply.

I believe that Riyadh Air intends to offer a top notch inflight experience, that will be competitive with the best products out there. However, the claims being made are counterproductive, if you ask me, and will almost certainly lead to disappointment. It’s especially interesting how Douglas frames this — he doesn’t claim that he thinks the cabins will be so good, but rather he thinks that we’ll conclude that.

I really respect Douglas, but I’m confused as to whether he actually believes what he’s saying, and if so, what his reference point is:

Riyadh Air’s business class will be better than any first class out there? Will these be suites in a 1-1-1 configuration with floor to ceiling doors? Riyadh Air’s premium economy will be better than any business class out there? Will premium economy consist of fully flat beds with doors? Riyadh Air’s economy will be better than any premium economy out there? Will economy have 40? of pitch, and be in a 2-3-2 configuration? Starlux business class or Riyadh Air premium economy?

While a lot of airline executives make questionable claims, the only other person I’ve seen who takes matters this far is former Qatar Airways CEO Akbar Al Baker. He was once asked by a reporter if the airline was considering adding premium economy, to which he responded that there was no need for this, as Qatar Airways’ economy is already better than premium economy on other airlines. That’s patently false.

Etihad first class or Riyadh Air business class?

I’d love to be proven wrong, and for what Douglas is saying to be true. However, ironically that contradicts the whole point that Douglas has been making about Riyadh Air’s business model:

There’s huge demand for travel to & from Riyadh, and the market is currently underserved Riyadh Air is a business and not a charity, and offering products like first class isn’t profitable, since it takes up so much space So then how can you claim for it to be economically viable to have an economy that’s better than premium economy, a premium economy that’s better than business class, and a business class that’s better than first class? ITA premium economy or Riyadh Air economy?

Bottom line

Riyadh Air is just over a year from launching, and I’m excited to see what the airline has in store. I have a lot of respect for the management team at the airline, and I trust they’ll come up with something innovative. However, as I’ve watched CEO Tony Douglas doing the media circuit, I’ve been hearing an increasing number of claims that are just fantastical in nature.

Douglas really took it to the next level during a recent interview, where he claimed that business class, premium economy, and economy, will all be better than virtually any other product out there that’s one cabin up.

I’m not sure what exactly Douglas’ strategy is here. If what he’s saying is true, it defies logic and economics. And if what he’s saying isn’t true, then he’s just setting consumers up for disappointment when the cabins are actually revealed.

What’s your take on the claims being made by Riyadh Air’s CEO?


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