Saudia Group Places Landmark Order for 105 Airbus Planes
20.05.2024: In a historic move, Saudi Arabia’s Saudia Group has announced a landmark deal to purchase 105 Airbus planes, marking the largest aircraft order in the country’s aviation history.
The Saudia airline will expand its fleet with 54 A321neo aircraft, while its budget subsidiary, flyadeal, will acquire 12 A320neo and 39 A321neo planes. This significant investment underscores Saudi Arabia’s commitment to bolstering its aviation sector.
“This landmark agreement encompasses 105 confirmed aircraft and marks a significant moment not only for the Saudi aviation industry but also for the wider MENA region,” the statement read.
A Historic Investment in Saudi Aviation
This purchase is not just the largest in Saudi aviation history but also a part of the broader Vision 2030 strategy, spearheaded by Crown Prince Mohammed bin Salman. The vision aims to transform the kingdom’s petroleum-dependent economy by boosting various sectors, including aviation. The goal is to more than triple annual passenger traffic to 330 million by the decade’s end.
New Fleet Details and Future Plans
Deliveries of the new Airbus planes are set to begin in 2026 and will continue through 2032. While the financial details of the deal were not disclosed, Saleh Eid, vice president of fleet management and agreements, confirmed the timeline for these additions.
Prior to this deal, Saudia operated a fleet of 144 aircraft, while flyadeal had 32. The acquisition of these new planes will significantly enhance their operational capacity.
Strengthening the Aviation Infrastructure
The Saudi government has ambitious plans to support this expansion, including the development of a large new airport in Riyadh capable of accommodating 120 million passengers annually. This will complement the operations of Riyadh Air, a new carrier expected to launch flights next year.
Historical Context and Future Aspirations
Founded in 1945, Saudia, also known as Saudi Arabian Airlines, has a long history in the aviation industry, starting with a jet gifted by US President Franklin Roosevelt. The state-owned carrier is now poised to concentrate more operations out of Jeddah, especially as Riyadh Air commences its services.
Vision 2030 and Economic Impact
Ibrahim Al-Omar, Saudia Group’s director general, highlighted the importance of this deal in supporting Vision 2030. “This significant deal will create jobs, increase local content, and contribute to the national economy,” he stated.
Competitive Gulf Aviation Market
Saudi Arabia’s aviation ambitions are set against a backdrop of a highly competitive Gulf market. Dubai’s Emirates and Qatar’s Qatar Airways are major players, with extensive route networks and significant passenger capacities. Saudi Arabia is also launching NEOM Airlines, based in the planned megacity of NEOM, further expanding its aviation footprint.
This landmark deal not only marks a milestone for Saudia Group but also signals Saudi Arabia’s strategic push to become a central hub in global aviation.