Aircraft manufacturer Boeing could have another significant aircraft order locked in for this year, as the Saudi Arabia Public Investment Fund is closing in on a new order valued at approximately $35 billion. The massive order will be to supplement the fleet of the Kingdom's new national carrier - which is set to officially launch soon.

Launching one year earlier than planned

As part of the Kingdom's long-term plans to revamp and evolve its aviation industry, the Saudi Arabia Public Investment Fund threw in an estimated $30 billion in various developments. One such development a new national carrier planned to work closely alongside Saudia while operating from King Khalid International Airport in Riyadh.

The airline was initially scheduled to launch next year in 2024, but the plan was later brought forward to an expected launch by the year-end of 2022 as in October, the Saudi Arabia Public Investment Fund was already in advanced discussions to order about 40 Airbus A350 aircraft from Airbus. Negotiations with Boeing were also underway for aircraft that would enhance Saudia's fleet and build the new operator's fleet.

Unfortunately, the year-end launch plans didn't happen, and instead, the airline, which we now know will be named Riyadh Air, was formally launched on Sunday. The year-end launch plans were likely pushed to this year as discussions with Boeing were yet to be finalized at that time. And while it seems unclear when the deal with Airbus will be completed, talks with Boeing went quicker.

Saudia Boeing 787
Photo: Tom Boon | Simple Flying

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A possible outlook of RIA's future fleet

At the time of writing, Boeing has yet to respond when asked for a comment. And although the specifics of the significant aircraft order are yet to be fully revealed, the Saudi Arabia Public Investment Fund will likely be taking in more widebodies than narrowbodies, especially for the new airline's fleet.

Currently, Saudia only flies to less than 100 destinations, of which nearly 30 are domestic. But for the Kingdom to successfully compete as a global aviation hub, it must be connected to over 150 routes across Europe, North America, South America, Asia, and Africa. And this is where carrier is expected to chip in heavily.

The anticipated second national carrier was drawn up with a widebody fleet strategy plan that would help cater to long-haul international and intercontinental air travel demand. This means that the new airline could be housing a future fleet of Boeing 787s and 777s, much like Saudia's widebody fleet at the moment.

However, it would be interesting to see if the airline will be a customer for the Boeing 777X, an aircraft type that Saudia has yet to fully commit to after discussions with Boeing went on for several years. And when paired with the potential Airbus order, the carrier could also be housing Airbus A350s in the future, further differentiating itself from Saudia fleet-wise.

A Boeing 777X taxiing to the runway.
Photo: Boeing

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Bottom line

Albeit it is admittedly unique that Saudi Arabia will have two national carriers, with the airline likely to be operating an all-widebody fleet initially, it does leave one wondering if such ambitions will be successful. Besides the primary goal of improving connectivity to the Kingdom, the carrier will have to compete heavily against Emirates, Qatar, and Etihad while trying to ensure that its hopeful newfound success will not overshadow Saudia's individual efforts.

Source: Reuters

  • 787-8 Dreamliner
    Boeing
    Stock Code:
    BA
    Date Founded:
    1916-07-15
    CEO:
    Dave Calhoun
    Headquarters Location:
    Chicago, USA
    Key Product Lines:
    Boeing 737, Boeing 747, Boeing 757, Boeing 767, Boeing 777, Boeing 787
    Business Type:
    Planemaker