Riyadh Air elevates planning efficiency through strategic partnership with Sabre

Rhea-AI Summary

Riyadh Air, the new national airline of Saudi Arabia, partners with Sabre Corporation to enhance operational efficiency and drive revenue gains through Sabre's Network Planning and Optimization solutions. The collaboration aims to optimize network design, forecast demand accurately, and allocate capacity profitably. Riyadh Air selects Sabre's Schedule Manager, Slot Manager, Profit Manager, and Market Intelligence solutions to achieve its strategic goals and improve the passenger experience. The partnership signifies a commitment to leveraging technology for sustainable growth and profitability.

Insights

Market Research Analyst

The partnership between Riyadh Air and Sabre Corporation represents a strategic move in the airline industry, aiming to enhance Riyadh Air's operational efficiency and revenue generation as it prepares for its inaugural flight in 2025. The integration of Sabre's advanced technology solutions into Riyadh Air's network planning and commercial processes is a significant step towards achieving a competitive edge in the market.

By utilizing tools like Sabre Schedule Manager and Sabre Slot Manager, Riyadh Air is expected to optimize aircraft utilization and manage airport slot portfolios more efficiently, which can lead to improved operating margins. The inclusion of Sabre Profit Manager and Sabre Market Intelligence – Global Demand Data (GDD) suggests a focus on data-driven decision-making, which could result in an up to 2% revenue increase, as per industry benchmarks. Such enhancements in network planning and optimization can contribute to Riyadh Air's long-term sustainability and profitability, potentially impacting the stock market perception of both Riyadh Air and Sabre Corporation positively.

Financial Analyst

This collaboration between Riyadh Air and Sabre Corporation is a forward-looking investment that could have a material impact on the financial performance of both entities. Sabre's technology suite is designed to increase revenue potential and operational efficiency, which are critical metrics for investors evaluating airline performance. The anticipated improvement in revenue by up to 2% due to the implementation of Sabre's Profit Manager aligns with the industry's push towards maximizing profitability through strategic network planning.

Furthermore, the adoption of Sabre's solutions by a new national carrier like Riyadh Air could serve as a case study for Sabre's effectiveness, potentially leading to similar deals with other airlines and influencing Sabre's market share and stock performance. Investors should monitor the deployment and integration process closely, as successful implementation could signal strong future performance for Riyadh Air, while also serving as a testament to Sabre's product efficacy, which could influence investor sentiment towards Sabre's stock.

Aviation Industry Expert

The aviation industry is highly competitive and the use of sophisticated network planning tools can be a game-changer for new entrants like Riyadh Air. By choosing Sabre's suite of solutions, Riyadh Air is positioning itself to manage one of the most complex aspects of airline operations—network planning and optimization. The ability to forecast demand and schedule flights profitably is crucial for airlines to succeed, especially in capacity-constrained environments.

Sabre's tools are designed to address these challenges, offering capabilities such as alliance modeling and advanced data analysis. This not only helps in improving day-to-day operations but also in strategic decision-making, which is essential for an airline in its nascent stages. The effectiveness of these tools in helping Riyadh Air to achieve a lean and profitable operation could set an industry benchmark for network optimization, potentially influencing the strategic decisions of other airlines and the overall competitive landscape.

Airline selects Sabre technology solutions to complement and augment its Network Planning, Commercial and Analytics processes

Riyadh Air is well positioned for future operations as it signs agreements with world class suppliers and moves towards its first flight in 2025

RIYADH, Saudi Arabia and SOUTHLAKE, Texas, Feb. 12, 2024 /PRNewswire/ -- Riyadh Air, the new national airline of the Kingdom of Saudi Arabia that's shaping the future of flying, announces a fundamental collaboration with Sabre Corporation (NASDAQ: SABR), a leading software and technology provider powering the global travel industry. This strategic partnership underscores Riyadh Air's commitment to enhancing operational efficiency and driving incremental revenue gains through Sabre's end-to-end Network Planning and Optimization solutions. Sabre Network Planning and Optimization solutions empower collaborative and intelligent decision-making, ensuring airlines can optimally design their networks, accurately forecast demand, and profitably schedule and allocate available capacity.

Under this groundbreaking deal, Riyadh Air has chosen Sabre's comprehensive suite of solutions, including Sabre Schedule Manager, Sabre Slot Manager, Sabre Profit Manager, and Sabre Market Intelligence – Global Demand Data (GDD) to achieve its strategic goals and drive its vision.

"Sabre's technology provides a new level of insight that will enable Riyadh Air to make informed network planning and commercial decisions, ensuring greater revenue returns, allowing us to invest more in enhancing the overall passenger experience," said Vincent Coste, Chief Commercial Officer, Riyadh Air. "We have carefully selected a stable of world class technical suppliers to power Riyadh Air towards its maiden flight in 2025, and this collaboration is a key milestone in our journey to achieve operational excellence and scale our business efficiently."

Sabre Schedule Manager is an industry-leading scheduling solution that increases aircraft utilization by optimizing the schedule development process from planning to distribution, thereby increasing revenue potential. This solution seamlessly integrates with a wide range of third-party solutions and has globally assisted airlines in achieving incremental operating margins and increases in productivity, while maintaining robust and operationally feasible schedules.

Sabre Slot Manager is another integral component of Sabre's suite that automates the slot process and efficiently manages an airline's critical slot portfolio with improved asset utilization. It stands out as the industry's most comprehensive slot management solution used by airlines operating with the most complex slot portfolios at some of the most severely capacity constrained airports worldwide.

Sabre Profit Manager accurately forecasts demand and profitability with an average increase of up to 2% in revenues. This empowers Riyadh Air to design profitable Network Plans and create an optimal hub structure.  Profit Manager incorporates the industry's most robust partnership and alliance modeling to pinpoint new revenue opportunities.

Sabre Market Intelligence - GDD connects Riyadh Air to robust market data and provides advanced data analysis capabilities across multiple areas, including Network Planning and Optimization. It improves data efficiency, enabling Riyadh Air to identify new revenue opportunities and increases competitive advantage with robust booking, shopping and market data analysis for commercial planning teams.

This strategic alliance between Riyadh Air and Sabre signifies a commitment to leveraging cutting-edge technology for sustainable growth, improved efficiency, and enhanced profitability.

"Sabre has a strong reputation for driving results through our innovative solutions that enable airlines to respond swiftly to competitor changes, identify new market opportunities, and optimize flight times for incremental revenue gains," said Garry Wiseman, Chief Product and Technology Officer, Sabre Travel Solutions. "Our end-to-end Network Planning and Optimization suite has been a cornerstone of commercial planning for over two decades, supporting brand differentiation and operational excellence."

Sabre's Network Planning and Optimization solutions have a proven track record of innovating and transforming commercial planning, with more than 90 global customers, including prominent airlines around the world. The suite addresses the end-to-end planning and scheduling lifecycle, supporting airlines of all types and sizes.

About Sabre Corporation
Sabre Corporation is a leading software and technology company that powers the global travel industry, serving a wide range of travel companies including airlines, hoteliers, travel agencies and other suppliers. The company provides retailing, distribution and fulfilment solutions that help its customers operate more efficiently, drive revenue and offer personalized traveller experiences. Through its leading travel marketplace, Sabre connects travel suppliers with buyers from around the globe. Headquartered in Southlake, Texas, USA, Sabre serves customers in more than 160 countries around the world. For more information visit www.sabre.com.

About Riyadh Air
Riyadh Air's is a digitally native airline focused on achieving Kingdom's 2030 vision to lead the aviation industry and put Riyadh on global map as a destination and gateway to the Kingdom of Saudi Arabia. The establishment of Riyadh Air is in line with PIF's mandate to unlock the capabilities of key sectors locally to drive the diversification of Saudi Arabia's economy. The airline will also support the Saudi Aviation Strategy's broader vision, and enable the National Tourism Strategy, unlocking Saudi Arabia's cultural and natural attractions to international tourists and creating new jobs.

SABR-F

Sabre Contacts:

Media
Kristin Hays
Kristin.hays@sabre.com

Heidi Castle
heidi.castle@sabre.com

Investors
Brian Roberts
sabre.investorrelations@sabre.com

 

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SOURCE Sabre Corporation

FAQ

What strategic partnership did Riyadh Air announce with Sabre Corporation?

Riyadh Air announced a strategic partnership with Sabre Corporation to enhance operational efficiency and drive revenue gains through Sabre's Network Planning and Optimization solutions.

What solutions did Riyadh Air choose from Sabre's comprehensive suite?

Riyadh Air selected Sabre's Schedule Manager, Slot Manager, Profit Manager, and Market Intelligence solutions to achieve its strategic goals and improve the passenger experience.

How does Sabre's Profit Manager help airlines?

Sabre's Profit Manager accurately forecasts demand and profitability, leading to an average increase of up to 2% in revenues for airlines.

What is the significance of the collaboration between Riyadh Air and Sabre?

The partnership signifies a commitment to leveraging cutting-edge technology for sustainable growth, improved efficiency, and enhanced profitability.

How many global customers does Sabre's Network Planning and Optimization suite have?

Sabre's Network Planning and Optimization solutions have more than 90 global customers, including prominent airlines worldwide.