Saudi Arabia’s newest national carrier, Riyadh Air, is engaged in talks with the European multinational aircraft manufacturer, Airbus, and its US rival, Boeing, to purchase a significant number of narrow-body aircraft as part of a three-part inaugural fleet acquisition, according to CEO, Tony Douglas.
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Planned order
In a recent interview on the sidelines of the International Air Transport Association (IATA) Annual General Meeting held in Istanbul on 4-6 June, Douglas affirmed that the planned order will not be “insignificant,” adding that it will not be the airline’s last order either.
The comments come at the heels of circulating reports over a possible deal for 150 Boeing 737 MAX aircraft in the making.
According to Reuters, Douglas confirmed that the order is set to be finalised after this year’s Paris Airshow but before the next Farnborough Airshow scheduled for July 2024, adding that it was “too early” to decide upon the new order.
The $30 billion new airline set to operate out of Riyadh will commence flight operations by early 2025, connecting Saudi Arabia’s capital city to over 100 destinations worldwide by 2030.
In March, the new carrier placed a hefty order for 72 Boeing 787 Dreamliners, including 39 confirmed and an option for 33, marking the fifth-largest order in the manufacturer’s history.
Anticipated rivalry
Addressing the emerging speculations over the impending competition that Riyadh Air is expected to pose for GCC titans including Emirates, Etihad, and Qatar Airways, Douglas emphasised that the airline’s foremost objective is not to foster rivalry.
“We are not here to set up a rival to anybody else! We are here to serve the kingdom and its population, to give them connectivity to the world and support the second-fastest-growing economy,” he said, revealing that the carrier’s extensive network will feature all major European and Asian capitals as well as main North American destinations.
Meanwhile, Riyadh Air’s narrowbody aircraft fleet will be mainly used to serve the Indian subcontinent and Gulf region.
Strategic partnerships
Douglas revealed that Riyadh Air is currently in talks with other airlines over codeshares partnerships. “Most successful airlines have an extended network through really great partnerships — One of the many reasons why we’re engaging with our colleagues here at IATA is to start that particular dialogue.”
Despite the anticipated rivalry, the inception of Riyadh Air appears to have garnered positive reception from airlines throughout the region. In May, Qatar Airways CEO, Akbar Al Baker, said he was excited about the carrier’s launch, stressing that there is plenty of business for everyone in the market.
“We are very excited for Riyadh Air, and we wish them all the best,” Al Baker said, adding that Qatar Airways will cooperate with and support the new airline.
On his part, Emirates’ Chief Commercial Officer, Adnan Kazim told Aviation Business Middle East that the airline operates in an environment of full competition, especially with the ‘Open Skies’ policy adopted by Dubai. “This should not be looked at as a threat! On the contrary, I think this is complementing the region with more choices and options,” he said.
Kazim further emphasised that the new airlines will bring new types of business and more tourists to both Saudi Arabia and Dubai.