Saudia to purchase 105 Airbus aircraft in ‘largest aircraft agreement’ in Saudi Arabia’s history – News

Saudi Arabia’s Saudia Group has made a historic deal with Airbus to purchase 105 aircraft, marking the biggest aircraft deal in the country’s history. The deal, valued at $19 billion, includes 54 A321neo aircraft for Saudia airline and 12 A320neo and 39 A321neo planes for budget offshoot flyadeal. This announcement was made at the Future Aviation Forum in Riyadh, showcasing the significant investment in the Saudi aviation industry.
The purchase is part of Saudi Arabia’s efforts to expand its aviation sector, with plans for a new airport in Riyadh that can accommodate up to 120 million passengers annually. Additionally, there will be a substantial expansion of the airport in Jeddah, the busiest airport in Saudi Arabia. These developments aim to support the country’s goal of tripling annual traffic to 330 million passengers by 2030 as part of the Vision 2030 reform agenda.
The Saudia Group’s director general, Ibrahim Al-Omar, highlighted the economic impact of the aviation sector, which contributed $20 billion to the Saudi economy in 2023. The industry supports more than 241,000 jobs and an estimated 717,000 jobs in the tourism sector. This significant deal is expected to create more job opportunities, increase local content, and further boost the national economy.
Steven Greenway, chief executive of flyadeal, emphasized the rapid growth of the market and their ambitions to expand internationally. Flyadeal currently operates mostly domestic flights but plans to increase its international presence in the coming years. This expansion aligns with the overall growth of the aviation sector in Saudi Arabia, which has seen significant investments and partnerships with leading aircraft manufacturers.
Despite challenges faced by Boeing, Saudi airlines have continued to secure deals for new aircraft. Riyadh Air, a new carrier, has also announced plans to purchase Dreamliner planes from Boeing and is expected to begin operations in the summer of 2025. The expansion of Riyadh Air aims to open approximately 10 destinations by the end of the year and more than 100 by the end of the decade. This rapid growth in the aviation sector sets Saudi Arabia on a trajectory to become a key player in the global aviation market.
The establishment of NEOM Airlines in the planned megacity NEOM further demonstrates Saudi Arabia’s commitment to developing its aviation industry. With plans to launch new airlines and expand existing operations, the country is set to compete with other Gulf countries like Dubai and Qatar, which have established themselves as major aviation hubs. Despite the competitive landscape, industry experts believe in the potential for Saudi Arabia’s aviation sector to continue growing and contributing significantly to the country’s economy.