Business

The largest-ever aircraft order from Saudi Arabia is not going to Boeing.

The largest-ever aircraft order from Saudi Arabia is not going to Boeing.
The largest-ever aircraft order from Saudi Arabia is not going to Boeing.
Written by Newils
66 / 100

Viewed in November 2023, the Saudia Group exhibitor area at the Dubai Air Show in Dubai, United Arab Emirates.

The largest-ever aircraft order from Saudi Arabia is not going to Boeing.

The largest-ever aircraft order from Saudi Arabia is not going to Boeing.

The largest-ever order in Saudi Arabia’s aviation history was placed by the national airline, which is another victory for ailing rival Boeing in Europe for 105 Airbus aircraft.

According to Ibrahim Al-Omar, director general of Saudia Group, the state-owned company that owns Flyadeal, a low-cost airline, and Saudia Airlines, the first aircraft will be delivered in the first quarter of 2026.

Speaking of the arrangement with Airbus, he stated, “The Saudia Group announces today the largest deal in the history of Saudi aviation,” during a speech at the Future Aviation Forum in Riyadh.

According to its website, the Saudia Group now operates 51 Boeing and 93 Airbus aircraft in its fleet. Additionally, the European aircraft manufacturer stated in a statement that the most recent agreement adds to the group’s current backlog of 39 Airbus orders.

The largest-ever aircraft order from Saudi Arabia is not going to Boeing.

The largest-ever aircraft order from Saudi Arabia is not going to Boeing.

The $33 million CEO compensation package is put to a vote by Boeing shareholders.

Al-Omar did not clarify if the order’s overall value or the quantity of aircraft ordered constituted Saudi Arabia’s largest-ever aviation transaction. Saudia Group did not answer questions from CNN regarding that or the deal’s worth, and Airbus withheld a comment.

However, the Future Aviation Forum organizers stated in a news release that the new purchase was worth $19 billion.

See also  Kia is recalling 463,000 Telluride SUVs due to the possibility of fire in the front seats.

Al-Omar added in a different statement that the new directive would contribute to the realization of Saudi Arabia’s Vision 2030, a program designed to diversify the economy of the nation away from oil. Encouraging tourists to visit the kingdom is a crucial component of the campaign.

Al-Omar stated, “Saudia has ambitious operational objectives to meet growing demand.” “With plans for further expansion, we are increasing flights and seat capacity across our existing 100+ destinations across four continents.”

By 2030, the nation wants to draw 150 million visitors annually, as stated in its National Tourism Strategy.

The Saudia Group exhibitor area at the Dubai Air Show in Dubai, United Arab Emirates, seen in November 2023.

Another victory for Boeing’s opponent

The announcement of the Saudi agreement comes as Boeing (BA), Airbus’s principal competitor, is under close investigation for a number of safety lapses, including the January explosion of a portion of the fuselage in midair.

Numerous inquiries into Boeing’s procedures, a reorganization of the company’s leadership, and assurances that the business will improve have all been sparked by the tragedy.

However, Boeing has been having trouble ever since the deadly crashes of its 737 Max aircraft in 2018 and 2019 forced the company to ban the best-selling aircraft for 20 months. The epidemic, which nearly stopped air travel for months and resulted in significant losses for the majority of the airlines that purchase Boeing aircraft, also had a negative impact on the corporation.

The corporation has recorded adjusted losses of almost $31 billion since the grounding began in 2019. Its stock price has fallen about 28% since the start of the year.

See also  Desire a cheap rate on a mortgage? Accept someone else's

Even with a $529 billion backlog of orders for more than 5,600 commercial jets, Boeing is unable to produce enough aircraft annually to make a profit as it works to resolve its quality problems. At the end of 2023, Airbus announced an order backlog of about 8,600 aircraft and recorded a €3.8 billion ($4.1 billion) profit for the year.

The largest-ever aircraft order from Saudi Arabia is not going to Boeing.

The largest-ever aircraft order from Saudi Arabia is not going to Boeing.

Other stories

About the author

Newils

Verified by MonsterInsights