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Saudia Group signed a firm order for an additional 105 A320neo Family aircraft, comprising 12 A320neo and 93 A321neo aircraft. This increases Saudia Group’s Airbus aircraft order backlog to 144 A320neo family aircraft.
The agreement was announced at the Future Aviation Forum in Riyadh in the presence of H.E. Saleh bin Nasser AIJasser, Minister of Transport and Logistic Services of the Kingdom of Saudi Arabia, H.E. Engr. Ibrahim Al-Omar, Director General of Saudia Group and Benoît de Saint-Exupéry, Executive Vice President Sales of the Commercial Aircraft business.
H.E. Engr. Ibrahim Al-Omar, Director General of Saudia Group, said: “Saudia has ambitious operational objectives to meet growing demand. We are increasing flights and seat capacity across our existing 100+ destinations on four continents, with plans for further expansion. The progress of Saudi Vision 2030 is attracting more visits, tourists, entrepreneurs, and pilgrims each year. This motivated our decision to secure this significant deal, which will create jobs, increase local content, and contribute to the national economy.”
“The new additions of the A320neo family aircraft will play a vital role in contributing to Saudi Arabia’ ambitious Vision 2030 plan,” said Benoît de Saint-Exupéry, Executive Vice President Sales of the Commercial Aircraft business. “It will enable Saudia Group’s strategy to advance the Kingdom’s aviation capabilities while enabling both airlines to benefit from the A320neo Family’s exceptional efficiency, superior economics, highest level of passenger comfort as well as lower fuel-burn and emissions.”
Saudi Arabia is creating unprecedented opportunities for global aviation through the Saudi National Tourism Strategy, which targets more than 150 million tourists by 2030. This order with Airbus will play a significant role in strengthening the Kingdom’s ambition of becoming one of the top global tourism destinations.
- This is the largest order from Saudia Group to date and adds to its 39 Airbus aircraft backlog. The estimated value of the deal is ~$19Bn.
- The airline is growing in line with the market.
- Selecting Airbus is a blow for Boeing– Saudia Group’s current fleet includes 93 Airbus and 51 Boeing aircraft.
- The choice likely was not driven by price but by delivery reliability and model.
- Saudia Group wants the A321 like everyone else. The single-aisle MoM is the new average.
- Absent any firming of EIS on the MAX 10, the A321 wins even with its long backlog.
- If the MAX 10 EIS miraculously occurs next year, several A321neo orders might move toward the MAX 10. But airlines can’t plan on miracles.
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