Boeing is set to secure a significant order of nearly 80 787 Dreamliner aircraft from two Saudi Arabian airlines, according to sources briefed on the matter. The plan, expected to be announced as early as Tuesday, would see state-owned Saudi Arabian Airlines (Saudia) and the new national airline, Riyadh Air, purchasing a total of 78 787s between them, along with options to buy a further 43. The list prices for the aircraft would total around $37 billion, though the airlines will likely receive undisclosed discounts.
The creation of Riyadh Air, which was officially announced by Crown Prince Mohammed bin Salman on Sunday, comes as Saudi Arabia seeks to compete with other regional transport and travel hubs. The airline will serve more than 100 destinations around the world by 2030, making use of the kingdom’s location between Asia, Africa and Europe, and is expected to create more than 200,000 jobs.
The new airline is wholly owned by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, which has more than $600 billion in assets and is spearheading the kingdom’s efforts to diversify its economy and wean itself off oil. The investment is also expected to add $20 billion to Saudi Arabia’s non-oil GDP growth.
While the Boeing deal is yet to be formally announced, it comes after United Airlines placed a major order for 100 787 Dreamliners and 100 737 MAX jets in December. Boeing had been lobbying for a slice of Saudi Arabia’s transportation expansion, while in October, the kingdom was in advanced negotiations to order almost 40 A350 jets from Airbus.
Airlines Continue to Expand and Modernize the Fleet
Meanwhile, as airlines around the world continue to expand their fleets, it was recently reported that Indian budget carrier IndiGo is in talks with both Airbus and Boeing to purchase more than 500 aircraft, which may include widebody planes like the 787 or Airbus A330neo.
The Federal Aviation Administration has also announced that Boeing will be allowed to resume deliveries of the 787 Dreamliner this week, after being temporarily suspended since February. With the aviation industry looking towards recovery following the impact of the COVID-19 pandemic, this latest deal highlights the growing demand for new aircraft as airlines seek to expand their fleets and offer more routes and services to passengers.
Source: Reuters
First love never dies. I fell in love with airplanes and aviation when I was a kid. My dream was to become a pilot, but destiny led me to another path: to be an aviation digital media content creator and a small business owner. My passion for aviation inspires me to bring you quality content through my website and social accounts. Aviation is indeed in my blood and blog!
