Saudia, the flag carrier of Saudi Arabia, recently completed an interesting and inspiring rebrand. They showed off a new brand direction, a new fleet livery, and a new logo. This move isn't just about aesthetics. It's a strategic maneuver designed to reinforce the airline's national identity and align with Saudi Arabia's ambitious Vision 2030. Yet what’s unusual about this rebrand is that it’s not exactly new. Saudia is reuniting the region and, in so doing, going back to the future, indeed — by reviving its 1980s-era livery. This retro refresh includes a very special touch – the throwback green oval with the word “Saudia” in all caps that once adorned the aircraft’s underbelly. Why are we returning to the future? What does this all mean for the future of the airline and the Kingdom?
The decision to go back to a more classic design isn’t simply a nostalgic throwback. It's a calculated effort to connect with the airline's heritage and evoke a sense of national pride. Of course, the green color, so boldly represented on the livery, is very symbolic. This flag-like plane livery provides a literal and immediate connection to the colors of the Saudi Arabian flag, and subconsciously links the airline to the nation’s identity. Furthermore, Saudia states that the green also signifies the airline's commitment to supporting the sustainability goals outlined in Vision 2030. This alignment with national objectives is crucial, as it positions Saudia as a key player in the Kingdom's broader development plans. The logo, featuring the iconic palm tree and two crossed Saudi swords, remains, providing continuity and reinforcing the airline's deep roots in Saudi culture.
This rebranding initiative is deeply intertwined with Saudi Arabia's Vision 2030, a comprehensive plan aimed at diversifying the Kingdom's economy and reducing its reliance on oil. The country’s vision includes considerable investments in tourism and infrastructure. Aviation is doing an indispensable part to develop this further. Saudia's digital transformation plan is designed to enhance the airline's operational efficiency, improve customer experience, and expand its network. By modernizing its fleet, streamlining its processes, and adopting innovative technologies, Saudia aims to become a leading global airline, attracting more international visitors and facilitating economic growth.
Strategic Branding Amidst Rising Competition
Saudia’s rebrand comes at a pivotal moment. At the same time, the airline is already under intense – or at least accelerating – competitive threat, most notably from the recently announced Riyadh Air. Riyadh Air intends to launch commercial flights in 2025. The formation of this new airline directly undermines Saudia’s long-held dominance in the Saudi Arabian aviation market. This new national airline is indeed majority-owned by the Public Investment Fund (PIF). It is intended to establish Riyadh as a key gateway to the world, supporting the Kingdom’s burgeoning tourism and business sectors.
While the launch of Riyadh Air comes as no coincidence, prompting Saudia to reconsider its brand positioning and fortify its competitiveness, Saudia focuses upon its deep cultural roots and clear national brand. By committing to Vision 2030, it hopes to be different enough from its new competitor that it shines. The retro livery, in particular, serves as a powerful visual reminder of Saudia's long-standing history and its role as the Kingdom's flag carrier. It’s not all about aesthetics. It’s not just about winning the dollars of travelers, whether they’re from here or abroad.
Restoring Saudia’s negative brand perception and brand loyalty was probably a key goal behind the rebrand. In a deeply competitive high-speed rail market, brand recognition and name association are critical for building and maintaining an initial and future passenger base. Through the campaign, Saudia has sought to reinforce its bond with younger generations. It achieves this by associating its brand with the country’s highest ideals and dreams. This, in turn, would have a ripple effect resulting in more bookings, improved customer experience, and healthier bottom-line.
The Costs of a Retro Refresh
Though the case for Saudia’s rebrand, strategically speaking, is obvious, the financial side deserves scrutiny. When repainting an entire fleet of aircraft this can be an enormous effort with very high costs associated with materials, labor and downtime. Saudia operates a very large fleet of Saudia, with about 101 widebody and 66 narrowbody jets. The expense of repainting each aircraft depends on its size and complexity.
Estimates suggest that restoring a single, narrowbody Airbus A320 through paint could reach as high as $50,000. In comparison, painting a larger Boeing 777 can cost more than $200,000. Saudia’s fleet includes a full complement of widebody aircraft. The painting on all of them may cost several million dollars. Here are the possible costs:
- Narrowbody Airbus A320: $50,000
- Boeing 777: $200,000
These costs, though no small potatoes, need to be considered in light of the possible upside to the rebrand. If the new brand identity and livery improves Saudia’s brand perception, they’ll attract more passengers. Even if the revenue were to stop being generated, the increased interest created would be more than worth the investment. Beyond the direct cost of the rebranding, there can be millions in savings over the future. Perhaps it increases their operational efficiency and reduces their marketing costs.
In addition to the direct cost of repainting, there are indirect costs to account for. These factors include the downtime incurred when aircraft are taken out of service for repainting. To include behind the scenes moves, too, they include what could upend flight schedules. Saudia will have to thread these logistical obstacles with a fine needle to keep their effects from ruining their planned operational rebound. It's important to note that the rebrand is just one component of Saudia's broader digital transformation plan. The airline is investing in new technologies, training programs, and customer service initiatives, all of which contribute to the overall cost of the transformation. It’s true that these investments are important for making certain that Saudia can be as competitive as possible in the long term.
In conclusion, Saudia's decision to bring back its old livery is a strategic branding move aimed at reinforcing its national identity, aligning with Saudi Arabia's Vision 2030, and strengthening its competitive position in the face of rising competition from Riyadh Air. Repainting the entire fleet has substantial financial burdens. The long-term advantages of the rebrand, such as increased brand perception, increased customer loyalty, and increased financial performance, might be worth the splurge. The airline's success will depend on its ability to effectively communicate its brand message, deliver a superior customer experience, and adapt to the evolving dynamics of the aviation industry.
