Riyadh Air, a recently established airline, is apparently in negotiations with Boeing about making a significant purchase of at least 150 brand-new 737 MAX aircraft. The possible acquisition follows the carrier’s historic announcement earlier this year that it would buy up to 72 Boeing 787-9 Dreamliners.
One-aisle requirements
Although people involved with the negotiations told Bloomberg on Sunday that Boeing and Riyadh Air have not yet commented on the potential agreement, the Saudi Arabian airline is reportedly looking to purchase between 300 and 400 single-aisle aircraft. During the forthcoming June Paris Air Show, there might be a Boeing announcement.
Airbus is a potential competitor for part of the greater demand for single-aisle aircraft, most likely with the A321neos, although at this time, Boeing may have a significant edge due to its capacity to offer delivery slots in the relatively near future. According to Bloomberg’s sources, Airbus won’t be able to make any meaningful deliveries until around 2029.
In the first half of the year, the company expects to be able to deliver about 30 737s per month, and then 40 per month in the second half, according to Boeing CFO Brian West, who made the announcement at a conference last week. Following the rectification of a fuselage manufacturing fault from its supplier, Spirit AeroSystems, Boeing began 737 deliveries last week.
Boeing’s MAX 8 aircraft are now priced at about $53 million, making a transaction for 150 aircraft theoretically worth close to $8 billion. However, the majority of substantial orders for aircraft usually end up being fulfilled at prices that are greatly reduced.
Saudi Air
Along with Saudia, the country’s current flag carrier, Riyadh Air made its official debut on March 12 of this year. Saudia is not anticipated to be replaced by the new carrier, which is controlled by the country’s Public Investment Fund; instead, it will offer various services designed to enhance Saudia.
King Khalid International Airport (RUH) in Riyadh will serve as the principal hub for Riyadh Air, which will connect the region to larger Asia, Africa, and Europe. The airline claims that by 2030, its network will have expanded to 100 locations.
The airline was founded as a result of the National Aviation Strategy of the Kingdom, which aims to triple the number of travelers in the nation annually to 330 million by 2030. Likewise, Saudi Arabia intends to bring in 100 million tourists annually by 2030, according to the associated National Tourism Strategy.
recent orders for Boeing
In March, Saudi Arabia ordered 39 787-9s and 787-10s for Saudia, with the option to purchase an extra 10. Later that month, the country ordered another 39 787-9s for Riyadh Air, with the possibility of purchasing an additional 33. The combined orders from the Kingdom for its two flag carriers ranked as Boeing’s fifth-largest purchase in terms of volume.
Riyadh Air has not yet made it known which 737 MAX version or versions it is interested in purchasing. Despite this, it is expected that the airline will search for aircraft with comparable capacity and range, making the MAX 9 or 10 the most plausible contenders given the carrier’s evident interest in the A321neo.
