Saudia Group, the parent company of Saudia airline and budget carrier flyadeal, has made a significant move by placing an extensive order for Airbus narrow-body aircraft. This order, consisting of 105 aircraft in total, signifies a noteworthy rebound for Airbus, especially following speculation that Boeing might secure more contracts from Saudi Arabia. Ibrahim Al Omar, the director general of Saudia Group, hailed this order as the largest in the country's aviation history.
The order comprises 12 A320neo and 93 A321neo single-aisle aircraft. Among these, Saudia will receive 54 A321neo jets, while Flyadeal is set to acquire 12 A320neos along with the remaining A321neos. Although the exact value of the deal remains undisclosed, estimations suggest it could be close to $19 billion. While Airbus doesn't disclose prices publicly, the 2018 list prices indicated that the A321neo was valued at approximately $130 million each. Flyadeal's CEO, Steven Greenway, noted that Saudia likely secured the order at a discounted rate, which is customary in the industry.
This move aligns with Saudi Arabia's ambitious plans to establish itself as a prominent regional aviation hub. In addition to this Airbus order, Saudi Arabia has announced the launch of a new airline called Riyadh Air, unveiled plans for a colossal six-runway airport, and placed a substantial order for 78 Boeing 787 Dreamliners last year. The announcement was made at the Future Aviation Forum in Riyadh, where the lavish King Abdulaziz Conference Center set the stage for the event.
Saudia Group has outlined a delivery schedule spanning from the first quarter of 2026 to 2032, indicating its intent to expand rapidly over the next seven years. This expansion drive is in line with Crown Prince Mohammed Bin Salman's Vision 2030 program, aimed at diversifying the kingdom's economy away from oil dependence, with tourism playing a pivotal role in this strategy. This decisive move cements Saudi Arabia's commitment to transforming its aviation sector and achieving its economic diversification goals.