Saudia airline orders 105 planes from Airbus

Saudi Arabia’s public airline operator, the Saudia group, will buy 19 billion euros worth of European planes.

The airline Saudia announced, Monday May 20, a total and firm order for 105 aircraft, estimated at 19 billion euros, welcoming a “historic agreement“. These aircraft are intended for the Saudi national airline of the same name and its low-cost subsidiary Flyadeal. This is a historic agreement for the petromonarchy which is more accustomed to Boeing. The aircraft concerned are A320 and A321neo, the Airbus’ flagship aircraft, lighter and less energy-consuming An order which comes one year after that of 72 aircraft by the other company, Riyadh Air.

This is an important step, not only for the Saudi aeronautical sector, but also for the entire Middle East North Africa region, where Airbus is increasingly establishing itself. The Crown Prince of Saudi Arabia, Mohammed bin Salman, considers the aviation sector as a pillar of his ambitious reform program called “vision 2030”. This program aims to transform the kingdom into a hub, a commercial and tourist exchange pole, while reducing its dependence on oil revenues.

Like the majority of its neighbors, Saudi Arabia is a welfare state that employs and maintains many public officials thanks to oil revenues. But the leaders know that all this will come to an end and they are already preparing for the future, if only to be there for the energy transition and decarbonization.

The region is at the crossroads of various international connections between the West and Asia, an essential passage. So, the country is going all out on aviation, but with planes that are supposed to pollute less. Saudi Arabia has also announced its intention to build a new airport near the capital Riyadh, capable of welcoming 120 million passengers per year. The aviation sector contributed $20 billion to the Saudi economy in 2023. Aviation represents 241,000 jobs, to which are added nearly 720,000 positions in tourism. A capital financial and economic windfall to gradually take over from the oil industry, the decline of which is predicted.