Facing a bottleneck in acquiring new single-aisle jets, Saudi Arabia's state-owned Saudia Group is reportedly in talks with both Airbus and Boeing to purchase wide-body aircraft. This move comes as the airline seeks to expand its passenger capacity despite a global shortage of narrowbody planes. The challenge stems from a surge in demand for single-aisle jets, the workhorse of short and medium-haul flights, outpacing current production capacity. Airbus, for instance, has declared itself sold out on single-aisle deliveries until the end of the decade.
In response, Saudia Group, which owns both Saudia Airlines and budget carrier Flyadeal, recently placed a significant order for 105 Airbus A320neo and A321neo family aircraft. However, this fell short of their initial requirement of 180 planes, highlighting the current limitations in the narrowbody market. Turning to wide-body aircraft, typically deployed for long-haul flights with higher passenger capacities, presents Saudia with an alternative path for growth.
These larger jets offer the potential to expand Saudia's network and cater to a different market segment. The talks with Airbus and Boeing suggest Saudia is keeping its options open. Both manufacturers produce leading wide-body models, such as the Airbus A350 and Boeing 787, which could fulfill Saudia's needs.
This shift in strategy reflects a broader trend within the airline industry. Several carriers are exploring wide-body options as a means to bridge the gap created by the single-aisle shortage. While wide-body jets typically have higher operating costs, airlines are calculating that these can be offset by increased passenger capacity and potentially lucrative long-haul routes. The final decision by Saudia Group will depend on negotiations with Airbus and Boeing, and how well each manufacturer's wide-body offerings align with Saudia's specific growth plans and route network ambitions.