Two Saudi airlines have promised to purchase at least 78 Boeing 737 Dreamliners in deals valued at nearly $37 billion.
Riyadh Air, a new Saudi Arabian carrier, will launch with an all-Boeing fleet of 787-9 Dreamliners. The airline agreed to acquire 39 of the efficient aircraft with options for an additional 33, according to a March 14 press release from Boeing.
Boeing also announced on March 14 that Saudi Arabian Airlines (SAUDIA), will add up at least 39 Dreamliners to its long-haul fleet, and has the option to acquire 10 more.
According to the press release, they plan to leverage the Boeing aircraft’s efficiency, range, and flexibility to sustainably develop its global business.
The Riyadh-based Public Investment Fund (PIF), which owns Riyadh Air, says the acquisition will facilitate tourism expansion and will help Saudi Arabia achieve its target of hosting 100 million visitors annually by 2030.
Riyadh Air said it has chosen the Dreamliner to power its worldwide launch and support its ambition of running one of the world’s most efficient and sustainable fleets.
The newly announced arrangement is part of Saudi Arabia’s larger strategic ambition to make the nation a worldwide aviation hub.
Saudi Arabian airlines confirmed on March 14 its intention to acquire up to 121 787 Dreamliners, making this the fifth-largest commercial order by value in Boeing’s history.
The deals will help the government meet its 2030 objective of serving 330 million passengers and attracting 100 million visitors.
“The new airline reflects the ambitious vision of Saudi Arabia to be at the core of shaping the future of global air travel,” Tony Douglas, CEO of Riyadh Air, said according to Boeing’s press release.
Stan Deal, president and CEO of Boeing Commercial Airplanes, also commented on the deal saying, “This is a significant order that will support Riyadh Air’s commitment to deliver a world-class travel experience while supporting American aerospace manufacturing jobs at Boeing and across our supply chain.
“We are incredibly proud of our nearly eight decades of partnership to drive innovation and sustainable growth in Saudi Arabia’s aviation sector.
“Our agreement builds on that longstanding partnership and will further expand access to safe and sustainable commercial air travel for decades more.”
White House Press Secretary Karine Jean-Pierre also offered comments, extending the executive branch’s support for the international deal. “This partnership is another milestone in eight decades of cooperation between Saudi Arabia and American industry.”
Jean-Pierre cited the massive price tag on the recently announced deal—together with a transaction from February for more than 200 aircraft for Air India’s commercial fleet—saying that they will support 1 million American jobs in the aerospace supply chain across 44 states.
“The most recent deals with Saudi Arabia alone support more than 140,000 American jobs, many of which do not require a four-year college degree,” Jean-Pierre said, crediting President Joe Biden’s dedication to making the United States a “global leader” in manufacturing.
“Today’s announcement ensures that Boeing and General Electric will anchor Saudi Arabia’s new international airline together with support for a new international airport,” Jean-Pierre went on.
“Our administration looks forward to working with Saudi Arabia and all partners in the Middle East to support a more prosperous, secure, and integrated region, which ultimately benefits the American people.”
