Saudi Arabia confirms its ambition to become a heavyweight in air transport. The national company Saudia Airlines announced on Monday May 20 that it had placed a firm order for 105 Airbus A320 Neo family. A contract, qualified “historical agreement” and with a value, list price, of 9.13 billion dollars (8.4 billion euros).
In detail, the Saudi company will purchase 54 A321Neo aircraft while its low-cost subsidiary, Flyadeal, will acquire 12 A320 Neo and 39 A321 Neo. The two carriers should receive their aircraft from 2026 and until 2032. This new order is part of the Vision 2030 program which wants to get the Wahhabi kingdom out of its dependence on oil revenue to make the country a tourist hub and commercial.
This change of footing was already visible a year ago when, on the occasion of the international air and space show at Le Bourget, in June 2023, the low-cost Saudi company Flynas concluded a contract for the acquisition of 30 A320 Neo. An order which complemented previous purchases of 90 A320 family aircraft.
Rise to power
Airbus was not the only manufacturer at the party. Boeing also had its share. Indeed, the Saudi Public Investment Fund (PIF) had previously ordered 78 long-haul 787 Dreamliners with 43 additional units as options. A contract valued, list price, at 22.8 billion dollars. These aircraft will be intended for the two state companies, Saudia Airlines and Riyadh Air.
With this rise in power, Saudi Arabia wants to compete with other Gulf companies, notably Emirates and Qatar Airways. To become a significant regional player, the kingdom is expanding the fleets of its companies. He even plans to create a new one, called Neom Airlines, which will be based in the eponymous city.
As a logical consequence, the country also intends to develop its airport infrastructure. The Saudi authorities have already announced that they will build a new platform capable of accommodating 120 million passengers per year. This new airport should enable Saudi Arabia to achieve its goal of tripling annual traffic to 330 million passengers by the end of the decade. For the moment, the kingdom seems to be on a buoyant dynamic. In 2023, air traffic increased by 26% to reach 112 million passengers. More than the 87 million at Dubai International Airport.
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