Airlines
Saudi Arabia to order 40 A350s for new national airline RIA
To start a new airline and compete with Gulf heavyweight carriers, Saudi Arabia order 40 A350s.
Saudi Arabia is in advanced talks with Airbus to purchase over 40 A350 aircraft as part of a larger, multi-billion dollar effort to start a new airline and compete with Gulf heavyweight carriers.
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People familiar with the situation informed Reuters on October 23, 2022, that the new aircraft would eventually join the fleet of the nation’s forthcoming national airline, Riyadh-based RIA. The kingdom’s Public Investment Fund might make the official announcement of the acquisition, which is expected to be valued at around $12 billion at list prices, during the Future Investment Initiative summit, which is slated to take place between October 25 and October 27, 2022.
A $100 billion investment in the aviation industry over the next eight years, the majority of which would go toward developing a new national carrier operating international routes, is one of Saudi Arabia’s Vision 2030 goals. The nation hopes to start operations with the new airline in the fourth quarter of 2022 and expects to serve at least 30 million travellers annually, up from the existing 4 million.
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The PIF-backed airline will face competition from other significant regional carriers including Etihad Airways, Qatar Airways, and Emirates. Huge funding is being provided to the PIF’s aviation division in order to establish an ecosystem of cargo and passenger airlines and airports. The PIF is purchasing and leasing options for a fleet that might eventually contain 200 aircraft, the source said.
Arabian Business reported that the nation will invest $30 billion in the new airline, which will focus on more than 150 routes in 80 different nations.
