Delta adds new partner: Riyadh Air, a Saudi startup aiming to rival Emirates, Qatar and Etihad
Delta Air Lines is joining forces with Saudi Arabia’s newest airline in a pact that gives the young Gulf carrier a major U.S. partner even before launching its first flight.
Delta signed a strategic agreement at its Atlanta headquarters Tuesday with Riyadh Air, the kingdom’s newest airline, which plans to commence operations in 2025.
The memorandum of understanding sets the stage for a deeper tie-up between the two airlines, serving “as the foundation for a strategic partnership,” the companies shared in a statement announcing the news.
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A deep partnership
The agreement between Delta and Riyadh calls for future interline and codeshare agreements, subject to regulatory approvals, the companies noted.
They also plan to explore a future joint venture. Such arrangements typically allow airlines to coordinate on pricing, scheduling and revenue-sharing. Delta currently has joint ventures with several of its most prominent partner airlines, including major carriers such as Korean Air, Air France-KLM, Virgin Atlantic, LATAM and Aeromexico (though the latter agreement is currently at risk to end amid a dispute with the Biden administration).
The companies also teased a future frequent flyer arrangement that would likely leverage the power of Delta’s SkyMiles program, noting plans for “a deeper partnership encompassing loyalty” and other operational components.
Nonstop Saudi Arabia flights planned
As part of the arrangement, Delta plans to launch future nonstop service to King Khalid International Airport (RUH) in Riyadh, the Saudi capital, the companies said.
No U.S. airlines currently fly to Saudi Arabia, and Saudi flag carrier Saudia is currently the only carrier flying regularly scheduled service between the kingdom and the U.S., with nonstop flights to New York City, Washington, D.C., and Los Angeles.
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Tourism push funded by sovereign wealth fund
The Delta-Riyadh ties come as Saudi Arabia is in the midst of a major tourism push, boosted by the hundreds of billions of dollars poured into its Public Investment Fund meant to diversify its economy beyond oil.
Riyadh Air, which launched as a company last year, seemingly hopes to compete with other major carriers in the Persian Gulf, like Emirates, Qatar and Etihad. Its CEO, Tony Douglas, formerly helmed Etihad.
The airline last year announced firm orders for 39 Boeing 787-9 Dreamliners, with options for 33 more.
Riyadh hopes to commence flights by 2025, and has plans to connect to 100 global destinations by 2030.
Delta isn’t Riyadh’s first partnership. In recent months, the new carrier has also inked strategic agreements with Singapore Airlines and Turkish Airlines, among others.
Delta gains new Gulf partner
Delta CEO Ed Bastian cited the new choices, benefits and destinations for customers in announcing the partnership with the Saudi startup airline.
“Most importantly, Riyadh Air shares Delta’s commitment to providing an elevated customer experience, which is why we’re looking forward to building and expanding this partnership in the months and years ahead," Bastian said in a statement.
It’s also worth noting that Delta’s enhanced tie-up with the Saudi startup comes after it spent much of the last decade sparring with the largest Gulf carriers over access to the U.S. and alleged subsidies from their rivals’ respective governments.
The feud eventually quieted down, but in the wake of the fallout, American Airlines ultimately dropped its own objections to instead double down on its partnership with Qatar via the Oneworld Alliance and United forged its own pact with Emirates — a rival it also once criticized.
Delta has maintained ties with Saudia through the SkyTeam alliance, but its newest arrangement with Riyadh Air could give it a regional partner that has hopes to someday compete with the connectivity offered by the more established Gulf carriers.
The Delta-Riyadh deal also includes an exclusivity agreement that specifies Delta will become Riyadh's exclusive North American partner and Riyadh Delta's exclusive partner in the Saudi capital city "and beyond."
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.