The significant agreement with two Saudi airlines is estimated to be worth $37 billion to the American manufacturer.
Boeing has acknowledged receiving a sizable order from Saudi Arabia, worth around $37 billion. The purchase of 78 Boeing 787s, which also has the option to buy an additional 43 planes, had been prioritized by the nation’s Public Investment Fund.
Both Saudia, the country’s flag carrier, and Riyadh Air, a new national carrier, will share the aircraft order. With the widebody aircraft, Riyadh Air will be able to take use of Saudi Arabia’s advantageous location between Europe, Asia, and Africa to start more than 100 flights globally by 2030.
The possible deal demonstrates the strength of Saudi Arabia’s expanding aviation business, including for low-cost carriers. Flynas, as an illustration, doubled its growth the previous year and shows no signs of slowing down as it continues to receive new planes and establish new routes.
Please welcome Riyadh Air.
Riyadh Air will be stationed at King Khalid International Airport in Riyadh, as revealed earlier this week by Saudi Arabia’s Crown Prince Mohammed bin Salman (RUH). The airline is anticipated to operate alongside Saudia, the nation’s present flag carrier, enhancing its network and providing distinct services rather than going head-to-head.
Tony Douglas, the former CEO of Etihad Airlines, will serve as the company’s leader while it works toward its aspirational expansion goals. It is envisaged that the airline will spur development, adding over 200,000 employment both directly and indirectly and $20 billion to Saudi Arabia’s GDP.
The action is a part of the Public Investment Fund’s initiatives to diversify the national economy and lessen reliance on foreign oil. According to reports, the fund has assets worth over $600 billion.
Added positive news for Boeing
Things now seem to be improving for the American manufacturer after a difficult few years that were marred by the pandemic, Boeing 737 MAX groundings, and later delivery concerns with the Boeing 787.
Boeing has closed a number of big transactions in just the last few months, including one with United Airlines, which ordered 100 Boeing 787s and 100 Boeing 737 MAX planes. After that, Air India placed orders for 190 Boeing 737 MAXs, 20 Boeing 787s, and 10 Boeing 777Xs for a total of 220 aircraft.
Additionally, discussions with Indian low-cost carrier IndiGo about a prospective order for hundreds of aircraft are still going on. The Federal Aviation Authority (FAA) revealed on Friday that Boeing 787 deliveries would be allowed to restart in a few days, which is further good news.
In February, certifications were suspended again due to a data analysis mistake with the aircraft’s forward pressure bulkhead. The FAA is pleased with how Boeing has handled the problem so far.
