Riyadh Air plots Heathrow expansion

Riyadh Air is preparing to spend hundreds of millions of pounds on securing new landing slots at Heathrow.

The Saudi Arabian start-up is targeting expansion at Britain’s biggest airport as part of its ambitious growth plans, having launched flights between Riyadh and London last month.

Currently, it has enough space to operate only one daily service to Heathrow. However, Tony Douglas, Riyadh Air’s chief executive, said he hopes to secure more slots by paying rival airlines a premium to sell up.

He said: “We want more access to Heathrow; that goes without saying. We want to do a lot more than just one rotation a day.

“This is all about where the money is, unashamedly. I’m not doing it because I’ve got a British passport. It isn’t romantic. We’re not looking just to serve nice-to-have destinations.

“We’re following the money and the demand.”

The going rate for slots at Europe’s busiest airport, which has been operating close to the limits of its two runways for years, is a well-guarded secret.

However, in the most recent publicised transaction, Oman Air paid $75m (£57m) for a pair of morning slots in 2016.

Therefore, Riyadh Air will face a bill of well over £200m if it wants to get anywhere near rivalling Emirates and Qatar Airways, which run seven and 10 daily flights from the Middle East to Heathrow.

Mr Douglas declined to put a price on its Heathrow expansion but said it will require “complex negotiations” with those carriers prepared to sell.

He said: “Heathrow is capacity-constrained, demand is extremely high, and slots are extremely difficult to get your hands on. So the cost will not be insignificant.”

The former Etihad boss, who spoke at the Four Seasons Hotel on Park Lane, said the draw of the UK capital for Saudis is such that paying a premium for slots makes sense.

He said: “You’ve only got to walk up and down this street to see the number of people who come here all year round from the Kingdom. And long may that continue.”

Riyadh Air launched services to Heathrow using a leased Boeing 787 on Oct 26, but has so far restricted flights to staff and their families.

Those passengers are being “surveyed to death on the new product”, Mr Douglas said, ahead of general ticket sales starting in the near future.

The UK-Saudi Arabia market was previously served by British Airways (BA) with two daily flights and Virgin Atlantic with one, together with three at Riyadh Air’s sister carrier Saudia.

The chief executive said that hundreds of pilots who have agreed to join Riyadh Air from other airlines will be asked to hand in their notice in the coming months as its fleet begins to grow.

That could trigger an exodus of crew at major carriers such as BA, lured by generous salaries.

Riyadh Air estimates it will need a workforce of 15,000 by 2030, including more than 4,000 pilots, as it expands its fleet to 182 aircraft. Mr Douglas said that more than 45,000 people have applied for the pilot positions alone.

Detailed plans are in place for the launch of 100 routes worldwide, with flights to the US high on the agenda.

Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.