RIYADH: Global tariff discussions are already beginning to reshape supply chains in the aviation industry, even before formal policies are enacted, a senior executive has said.
Speaking at the Future Hospitality Summit 2025 in Riyadh, Steven Greenway, CEO of Saudi Arabia’s low-cost airline flyadeal, explained that as aircraft components are sourced globally, geopolitical shifts are likely to impact logistics, manufacturing, and planning across the sector.
His comments came just hours after the US and China agreed to temporarily reduce tariffs, with the White House’s levies on most imports from the Asian country dropping from 145 percent to 30 percent, and Beijing’s duties on US goods falling from 125 percent to 10 percent. The move aims to ease trade tensions and allow three more months for negotiations.
Reflecting on the shift in the global economic order, Greenway said: “What I’m predominantly focused on though is not so much tariffs at the moment, it is more the supply chain.”
He added: “Interestingly, tariffs are impacting the supply chain ... even before the monetary effect of tariffs is coming, it’s connecting the supply chain because the supply chain is now moving around to try to accommodate and avoid tariffs.”
The CEO said: “There will be an impact. We’re already seeing discussions around an impact. The magnitude, the scale, I really don’t know.”
Greenway stated that some components of his airline’s engines are made in the US, while the airframes are built in Europe.
While broader trade dynamics present uncertainties, flyadeal is seeing clear internal gains from its latest technology adoption. The airline cut call volume by 80 percent overnight after launching an artificial intelligence-powered chatbot just one month ago, Greenway said.
“We’re quite late to the chatbot arena ... but we took our time in terms of the technology, the learning, the database that underpins that and so forth,” he explained. “That delay perhaps. or cautiousness, has paid off because we’ve actually deployed something that takes in the learnings of many other airlines.”
The chatbot currently supports interactions and bookings, and will soon be expanded with transactional capabilities. Greenway emphasized that AI is being used as a support system, not a decision-maker.
“What we’re doing is we’re using AI not as the decision tool, but a decision support tool; so, keeping the human in the mix,” he added.
Flyadeal’s digital transformation aligns with Saudi Arabia’s Vision 2030 plan to grow its aviation sector and boost tourism to 150 million annual visitors. The carrier plans to triple in size, expanding to more than 100 destinations with a fleet of over 100 aircraft and a workforce exceeding 4,000.
Also at the summit, Julien Renaud-Perret, executive director of hospitality at New Murabba Development Co., offered details on Riyadh’s upcoming mega project, the Mukaab. The immersive, cube-shaped landmark is set to host up to 27,000 visitors simultaneously when it opens.
“Our goal ... is to be able to transport people through technology through screens and holograms into a different world,” Renaud-Perret said. “It could be the ocean, could be Jurassic Park, could be the desert, could be the space.”
He added that the Mukaab is envisioned to be “an iconic landmark of the city” on par with the Eiffel Tower or Empire State Building.
The Future Hospitality Summit, running from May 11 to 13, brings together over 1,000 global tourism leaders, investors, and hotel operators.
Backed by strategic partners including NEOM, Red Sea Global, and the Tourism Development Fund, the event highlights Saudi Arabia’s rapid transformation into a leading global destination.
