A “historic agreement”, estimated at 19 billion dollars, the largest in the history of the rich Gulf monarchy. The Saudia group, which owns the Saudi national airline of the same name, announced on Monday that it would place a firm order for 105 Airbus planes. “This historic agreement covers 105 confirmed aircraft and 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 press release. .
Saudia will purchase 54 A321neo aircraft, while low-cost carrier flyadeal will acquire 12 A320neo and 39 A321neo aircraft, the statement added. The announcement was made during the Future Aviation Forum, a conference organized in Riyadh. In a separate statement, the forum estimated the value of the deal at $19 billion. This new order comes more than a year after that announced by the new company Riyadh Air and relating to 72 aircraft. Saudi authorities have announced plans to build a new airport in the capital Riyadh, capable of handling 120 million passengers per year. Currently, Saudia has a fleet of 144 aircraft, while flyadeal has 32.
Deliveries will begin in 2026 and continue until 2032, the group’s vice president for fleet management, Saleh Eid, told AFP, who nevertheless refused to disclose the value of the agreement. The Saudia company, based in Jeddah (west) and also known as Saudi Arabian Airlines, received its first jet plane in 1945, a gift from American President Franklin Roosevelt. The public carrier is expected to increasingly concentrate its operations from Jeddah following the effective launch of Riyadh Air, expected next year.
Crown Prince Mohammed bin Salman sees the aviation sector as a pillar of his ambitious Vision 2030 reform program, aimed at transforming the kingdom into a trade and tourism hub and reducing its dependence on oil revenues. 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,” said the general director of the Saudia group, Ibrahim Al-Omar, quoted in the press release. Last year, Saudia announced a deal to purchase 39 Dreamliner planes from Boeing, with options for 10 additional planes. Riyadh Air, established in March 2023, also announced an agreement to acquire 39 Boeing Dreamliners, with options for 33 additional aircraft. Additionally, Saudi Arabia plans to launch NEOM Airlines, which will be based in the eponymous developing city.
Saudi Arabia 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.