It is the largest deal ever struck by the 80-year-old Saudia airline group, which owns the Saudi national carrier of the same name. No less than 105 aircraft appear on the order which has just been sent to the French manufacturer Airbus. A “historic” agreement, praised Saudia, which marks an important moment not only for the Saudi aeronautical industry, but also for the entire MENA region (Middle East North Africa), added the group in a communicated.
The order could have been larger
The order is actually divided between two companies owned by the same group: the Saudia company will purchase 54 A321neo aircraft, while the low-cost airline flyadeal will acquire 12 A320 Neo and 39 A321neo, the press release adds. If the bill will be substantial for the rich Gulf monarchy, it is justified by the new project, recently announced by the Saudi authorities, to build a new airport in the capital Riyadh, capable of welcoming 120 million passengers per year. . A little over a year ago, the new company Riyadh Air had already ordered 72 aircraft from the French manufacturer.
The order would have been larger but the European aircraft manufacturer was not able to provide additional delivery slots before 2032, the airline said. “We need more than 180 planes but there are no slots,” Abdullah Alshahrani, a Saudia spokesman, told Bloomberg. Saudia should start receiving the single-aisle aircraft from 2026 and deliveries will continue until 2032, around half of which will be entrusted to its low-cost subsidiary Flyadeal. The group’s vice president for fleet management, Saleh Eid, however, refused to disclose the value of the deal.
Air travel, pillar of reforms in Saudi Arabia
This major order is actually part of a broader plan: Crown Prince Mohammed bin Salman considers the aviation sector as a pillar of his ambitious Vision 2030 reform program, aimed at transforming the kingdom into a commercial and tourist hub and reduce its dependence on oil revenues. Saudia currently has a fleet of 144 aircraft, while Flyadeal has 32.
One of the objectives of this program is to triple annual traffic to reach 330 million passengers by the end of the decade. Vision 2030 “motivated our decision to conclude this important agreement, which will create jobs and contribute to the national economy,” says the CEO of the Saudi group. Already last year, Saudia announced the purchase of 39 Dreamliner aircraft from Boeing, while Riyadh Air also announced the acquisition of 39 Boeing Dreamliners, with options for an additional 33 aircraft. This new airline should actually be launched next year.
And that’s not all: Saudi Arabia is also planning to launch Neom Airlines, which will be based in the eponymous developing city. The country is seeking to catch up in the aviation sector compared to two of its neighbors, the United Arab Emirates and Qatar. Dubai, the most famous city in the Emirates, is home to the busiest airport in the world in terms of international passengers, the hub of Emirates, the largest in the Middle East. Another Gulf air hub, Qatar is continuing the expansion of Hamad airport and the opening of new routes operated by Qatar Airways.