Saudi flyadeal Scraps 737 MAX Order for Airbus A320 Family

Today in Jeddah, Saudi Arabian airline flyadeal made the announcement of a significant addition to its fleet: an order for 30x A320neo aircraft, with options for an additional 20x A320neo family aircraft. This, the airline proclaims, is in response to continuing growth in passenger demand seen in domestic, regional, as well as international routes. Sadly, this comes as negative news for Boeing as the Saudia subsidiary will not proceed with their provisional order for 30 Boeing 737 MAX aircraft.

flyadeal had a provisional order with Boeing but decided to scrap it. Photo: flyadeal

According to flyadeal’s official press release, deliveries of the new aircraft will commence in 2021. The allocation of these new jets to flyadeal comes after the agreement which Saudi Arabian Airlines Corporation (Saudia), signed during the Paris Air Show in June this year.

The Saudia connection

The Saudia agreement was for 100 aircraft, and signed by the Director General of Saudi Arabian Airlines Corporation, His Excellency Eng. Saleh bin Nasser Al-Jasser. Also in attendance for signing was Christian Scherer, Airbus’ Chief Commercial Officer. Both signed the documents in the presence of the Chairman of Saudi Arabian Airlines Corporation, His Excellency Dr. Ghassan Abdulrahman Al-Shibil.

Saudia signing for up to 100 Airbus A320neos. Airbus and Saudi VIPs are present for the event. Photo: Airbus

flyadeal says that the additional aircraft will target price conscious travelers, according to this blurb in their press release:

“The additional aircraft are part of the dual brand strategy of the Saudi Arabian Airlines Corporation where flyadeal serves the price conscious customer that is seeking Everyday Low Fares.”

A snub to Boeing

With the Boeing 737 and Airbus A320 being direct competitors with each other, this order replaces the 30 737 MAX jets that were part of a provisional order made by flyadeal late last year. The order also had additional purchasing options for 20 737 MAX jets. At list prices the order was worth $5.9 billion.

After two 737 MAX aircraft crashed in Ethiopia in March and Indonesia last October, flyadeal began reconsidering its original commitment to order the aircraft type. In a Reuters article, a Boeing spokesperson said:

“We understand that flyadeal will not finalize its commitment to the 737 MAX at this time given the airline’s schedule requirements,”

Video of the day:

This case proves that it is important to understand aircraft order jargon and stay skeptical when an announcement is only based on a Letter of Intent. In fact, it’s possible we will see something quite similar happen with IAG and their massive order of 200 737 MAX aircraft.

The flyadeal fleet

The result of this new order will see flyadeal operating an all-Airbus A320 fleet in the future. Launched in September 2017, flyadeal was ‘born’ on Saudi Arabia’s national day almost two years ago.

The cabin layout and prices (in Saudi Riyal). Photo: flyadeal
flyadeal has a fleet of Airbus A320 aircraft. Photo: flyadeal

Currently, flyadeal operates 11x Airbus A320s according to Wikipedia. With this order of 30 neo aircraft, this will push their fleet size to 41. Furthermore, the fleet could be as large as 61 if they choose to exercise their options.

flyadeal routes

flyadeal currently only travels to domestic destinations within the Kingdom of Saudi Arabia. These include the following:

  • Abha – Abha Regional Airport
  • Dammam – King Fahd International Airport
  • Jeddah – King Abdulaziz International Airport (Base)
  • Qassim – Prince Nayef Bin Abdulaziz Regional Airport
  • Riyadh – King Khalid International Airport
  • Tabuk – Tabuk Regional Airport
  • Jizan – King Abdullah Bin Abdulaziz Airport
  • Medina – Prince Mohammad bin Abdulaziz Airport

Unfortunately this means that the majority of the world will have limited access to experiencing this airline as Saudi Arabia is famously restrictive with tourists entering the country. However, it looks like the government will soon open its country up to the world. We just don’t have an exact date.

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Bob Braan

Flyadeal prefers to buy planes, you know, you can use. Not sit on the ground for months while Boeing fixes many, many flaws. New flaws are being found faster than Boeing can fix the old ones.

Nigel

So, the ball is rolling now. How long will it be before other airlines abandon their MAX orders, and switch to another supplier? Airbus seems to have some relatively early slots on offer for the A320 family. And you also have Comac: the risk that the C919 MIGHT prove to be unreliable seems attractive compared to the certainty that the MAX already IS unreliable. Some smaller carriers might be able to downsize to the A220 or an Embraer. AirBaltic are delighted with their A220s, and KLM are explanding their sub-fleet of Embraers. One way or another, airlines will begin to… Read more »

Niklas Andersson

Nigel,

What will happen with all 737 Max currently grounded ? Rebuild or Reengineered ? or Scrap ?

Does Boeing going on with the manufacturing of the aircraft ?

Martin

I am re-stating what has been said elsewhere; the 737 Max (Christine Barbie Doll) will fly again. I think there is general agreement that Boeing took too many shortcuts and compromises that it will probably never be a great plane.

If passengers refuse to fly in them, orders will get cancelled when load factors fall. We aviation fanatics are not the general public. It will be them that will create the change…. (or not) . One more crash and certainly it will turn up the heat. Only time will tell.

Caroline

I can’t imagine Saudi Airlines and Saudi passengers who are among the richest passengers in the world flying on a Boeing aircraft after the 737 Max scandal since they can choose flying on an Airbus aircraft instead.

Howard B

“So, the ball is rolling now.
How long will it be before other airlines abandon their MAX orders, and switch to another supplier?”

If they don’t they will end up at the back of the queue and may have to wait to middle of next decade for their shiny new replacements…………………….

Frank

No wonder why Boeing fought so hard to not have the Max grounded. Here are the numbers so far: – As of July 15, there will be 565 Max’s on the ground. That number climbs to 775 by Dec 15. – Financial analysts have said it is costing them $5 billion a quarter as long as it is grounded. – Since Mar 15, Boeing has lost 325 orders; 225 @Jet Airways (went Bankrupt, 150 they had on order and 75 from a leasing company) 50 @Garuda (it is said it was done for financial reasons) and 50 @Flyadeal (30 orders… Read more »

Balan Tholandi

Boeing is hoping to find more scapegoats. First it was the pilot, now it’s low paid software engineers…. When are they going to fire the inept CEO and get some real leadership to correct the situation.

Kaden

All airlines should follow their example.

steven

Hope to see Boeing go out of business and their top brass go to jail.

Cec

I think this may be the tip of the iceberg. More and more problems seem to come up weekly. I will certainly not ride on one ever.