Riyadh signs massive deal with Boeing to modernise its commercial aircraft fleet
Riyadh Air, the new national carrier of Saudi Arabia, announced an order for 39 Boeing 787-9 aircraft, which will become part of the airline's fleet. The order includes an option to purchase an additional 33 aircraft, bringing the total to 72 aircraft. The new airline, which began operations last weekend, aims to connect Saudi Arabia to the rest of the world. This new fleet of Boeing 787-9 aircraft will offer passengers a relaxing and comfortable flying experience, with a spacious and modern passenger cabin. The airline has also announced plans to expand its fleet with the acquisition of additional aircraft in the coming years.
The three major state-owned airlines, Saudia, Flynas and SaudiGulf Airlines have received a significant injection of new aircraft to upgrade their fleet and increase their competitiveness in the Middle East.
The Public Investment Fund (PIF) owned company aims to provide air transport services to more than 100 destinations worldwide. The company is headquartered in the country's capital and largest city, Riyadh. Boeing in a statement announced that Saudi Arabia signed an agreement to turn the country into a global aviation hub. This is part of Saudi Arabia's broader strategic plan to rise to a higher level of leadership in the aviation sector.
Saudi Arabia Airlines and Riyadh Airlines have just signed an agreement to purchase a total of 78 Boeing 787 aircraft. This purchase will increase the fleet of both companies and improve the capacity and efficiency of their services. The agreement is a major step towards expanding the presence of both airlines in the international market.
Saudi Arabia's Crown Prince Mohammed bin Salman announced on Sunday the establishment of Riyadh Airlines, a new airline that is expected to serve as a competitive force in the region. Tony Douglas, an industry veteran, was appointed to head the new airline. Riyadh Airlines is designed to compete with regional transport and travel hubs as Saudi Arabia moves forward with its vision of a modern and open future.
The two airlines have also agreed a major deal with Boeing to purchase 43 Dreamliner aircraft. The agreement includes the purchase of 33 Boeing 787-9 Dreamliner aircraft for Riyadh Airlines and 10 Boeing 787-10 Dreamliner aircraft for Saudi Arabian Airlines. Deliveries of the aircraft will begin in early 2025 with a total price tag of $37 billion. This new fleet of aircraft will enable both airlines to increase their international reach and enhance the passenger experience. Riyadh Airlines CEO Tony Douglas said the new aircraft will help the airline position itself as a global connector, boosting both tourist and business travel to Saudi Arabia.
The deal will support the government's goal of serving around 330 million passengers and attracting 100 million visitors by the end of the decade. This new airline is expected to contribute around $20 billion to Saudi Arabia's non-oil GDP and could create more than 200,000 jobs, both direct and indirect. This will help stimulate economic growth in the region and increase tourism. All of this is in line with the Saudi kingdom's Vision 2030 programme aimed at diversifying the national economy away from exclusive reliance on oil.
Riyadh plans to expand its international passenger traffic services with a new airline that will compete with Emirates Airlines, Etihad Airways and Qatar Airways. Creating a new front in the intense regional competition for international passenger traffic.
Boeing and Saudi Arabia have been collaborating for nearly eight decades to drive innovation and sustainable growth in the aviation industry. The agreement between the two entities builds on this long-standing partnership and will enable safe and sustainable commercial air travel for many decades to come. Boeing Commercial Airplanes President and CEO Stan Deal was proud of this agreement and expressed his hope that it will contribute to a better future for the aviation industry.
Americas Coordinator: José Antonio Sierra