The United States White House declared that the Boeing Company completed two landmark agreements with Saudi Airlines and Riyadh Airlines to acquire 121 of their 787 Dreamliner passenger planes, totaling $37 billion.
To bolster its mission of serving 330 million passengers by 2030, the Saudi Public Investment Fund announced that aircraft delivery will begin in early 2025. This strategic deal is a major step towards achieving their ambitious goals and further emphasizes the importance of investing in air travel for this region.
This transaction was anticipated to increase the kingdom’s non-oil GDP by $20 billion. The Saudi embassy proudly proclaimed that this agreement of Boeing planes further solidifies the strong business ties between both countries, exhibiting an immense amount of trust and confidence in their relations.
Boeing declared in a statement that this agreement is one part of the wider Saudi plan to revolutionize itself into an international aviation hub.
The Saudi Investment Fund is thrilled to announce that aircraft delivery will commence in the beginning of 2025.
Boeing has reported that Saudi Arabia anticipates carrying 330 million travelers each year and welcoming 100 million tourists by 2030 with their two airlines.
With the launch of ‘Vision 2030’ years ago, Saudi Arabia is now taking substantial strides toward achieving their bold aviation objectives.
This past Sunday, the sovereign wealth fund known as the Public Investment Fund proudly announced a new air carrier – Riyadh Airlines.
Tony Douglas, the Chief Executive of Saudi’s ambitious airline project, recently revealed in an interview with CNBC that they are aiming to launch flights to over 100 destinations across the globe by 2030. He also added that there will be further orders placed as part of this massive endeavour.
At present, Saudi Airlines is operating a total of 144 aircraft – 93 Airbus and 51 Boeing (Anatolia).
Close business relationships
Saudi Airlines, currently with a fleet of 144 aircraft comprised of 93 Airbus and 51 Boeing models according to its website, is looking to extend its reach by increasing the number of planes in its armada.
Saudi airlines possess the distinct advantage of being able to source an enormous domestic market of approximately 35 million people, a factor that puts them in a pole position compared to other competitors such as Emirates, Etihad or Qatar Airways.
Dave Kallon, President of Boeing, assured CNBC that despite struggling to raise production due to suppliers still being impacted by the pandemic’s consequences, they will be able to fulfill the order.
He declared that the circumstances are getting better, and he was confident that they would be able to reach their production rates by 2022. This goal is set to manufacture 10 Boeing 787 aircraft per month from 2025-2026. Furthermore, he emphasized that the orders attained from Saudi companies aid in accomplishing this plan.
Yet, the manufacturer failed to include information regarding when the order was expected for delivery as well as how many orders were fulfilled between “787-9” and “787-10”.
According to Boeing’s 2019 price list, these two models are available at the cost of $292 million and $338 million each.