Saudi Arabia's budding airline, Riyadh Air, is gearing up to expand its fleet with a significant order for the industry's largest twin-aisle jets, aiming to make a decision in the early part of next year, according to CEO Tony Douglas. This move comes on the heels of recent acquisitions from both Airbus and Boeing, showcasing the airline's ambition to become a formidable player in global aviation. Riyadh Air, a creation of Saudi Arabia's Public Investment Fund, has already secured orders for 39 Boeing 787-9 Dreamliners with options for 33 more, and last month, it committed to purchasing 60 Airbus A321neo Family aircraft.
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This latest potential order, however, focuses on larger wide-body aircraft, with the airline contemplating between the Boeing 777X and the Airbus A350-1000. The decision, as stated by Douglas, is expected in the first or second quarter of 2025, aligning with the airline's strategic vision to connect Riyadh to over 200 destinations worldwide. The choice of these ultra-long-range jets underlines Riyadh Air's strategy to cater to high-demand routes where larger aircraft can be economically justified. Douglas emphasized the importance of not operating large jets like the 787-9 at less than three-quarters capacity, highlighting the economic considerations behind the potential acquisition of even larger aircraft.
This expansion is part of a broader initiative under Saudi Arabia's Vision 2030, which aims to diversify the economy away from oil dependency by fostering growth in sectors like aviation. Riyadh Air's growth trajectory is among the fastest in the industry, with plans to start operations in 2025, despite the global challenges of aircraft delivery schedules due to high demand and backlogged orders.
The decision to order more wide-body jets will not only increase Riyadh Air's capacity but also its capability to reach new long-haul destinations, enhancing its competitive edge against other Gulf carriers like Emirates, Qatar Airways, and Etihad. The airline's commitment to sustainable growth is evident as it also plans to enter the debt market next year with a mix of traditional and sustainable securities, reflecting its strategy to balance expansion with environmental considerations. As Riyadh Air navigates through these decisions, it continues to solidify its role in the global aviation landscape, aiming to serve as a bridge between Saudi Arabia and the world.