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RIYADH: Within months of launching Riyadh Air, Saudi Arabia is exploring the possibility of adding more airlines to its growing aviation sector, revealed a top minister.
In an interview with Al-Arabiya on the sidelines of the ongoing Paris Air Show, Saudi Minister of Investment Khalid Al-Falih said that the Kingdom’s aviation sector is witnessing significant growth, necessitating the country to look at the possibility of introducing more airlines to meet the rising demand.
“The Kingdom is a large country in terms of size, population, economy, and tourism ... deserving a wide range of airlines. Currently, Saudi Arabia is served by prominent airlines such as Saudia, flynas, and Riyadh Air, with more expected to be announced in the near future,” Al-Falih said, without sharing any timeline.
The minister emphasized that the Kingdom deserves to have more airlines in order to achieve its economic objectives.
HIGHLIGHTS
Global airliner rivals Boeing and Airbus notched up new orders from Algeria and the Philippines at the Paris Air Show on Tuesday.
Philippine Airlines will buy nine of Airbus’ A350-1000 widebody planes, while Air Algerie snapped up eight of Boeing’s medium-haul 737 MAX-9 aircraft.
Talking about the recently launched Riyadh Air, Al-Falih highlighted that the airline will greatly contribute to the economic and tourism growth of Saudi Arabia.
“Riyadh Air complements a lot of the Kingdom’s strategies. It greatly contributes to Saudi Arabia’s tourism sector growth strategy by connecting Riyadh to the capitals of the world,” he said.
The minister also stated that Riyadh is set to attract over 30 million visitors by 2030 which highlights the need for more airlines and aircraft.
“Riyadh is in need of new airlines that connect the capital with over 100 cities from around the world directly without any transits.
“The capital is also in need of new and advanced aircraft like the ones Riyadh Air received from Boeing after their recent partnership,” he said.
The minister further elaborated that the expansion of the aviation sector will have a positive impact on logistics and supply chain operations in the Kingdom.
Brisk business
Global airliner rivals Boeing and Airbus notched up new orders from Algeria and the Philippines at the Paris Air Show on Tuesday, after the European manufacturer snagged the biggest-ever single civilian contract.
Philippine Airlines will buy nine of Airbus’ A350-1000 widebody planes, while Air Algerie snapped up eight of Boeing’s medium-haul 737 MAX-9 aircraft.
At list prices — usually higher than discounted bulk orders — the Airbus deal is worth $3.3 billion and Boeing’s $1.0 billion.
With both plane builders’ order books well stocked, Philippine Airlines can expect delivery from 2025 while Air Algeria will have to wait until 2027.
Faced with growing demand for long-haul planes, Airbus is pushing to increase production of the A350, its latest airliner, setting a target of nine per month by the end of 2025.
Meanwhile, Boeing’s sales of the 737-MAX appear to be hauling it out of a slump triggered by both the COVID-19 pandemic and the aircraft’s lengthy grounding after two fatal crashes.
Irish low-cost carrier Ryanair in May ordered 300 of the planes.
Australian carrier Qantas confirmed it would buy nine of Airbus’ smaller A220 jets, the manufacturer said.
Tuesday’s deals have yet to match the 500-plane order made with Airbus by Indian low-cost carrier IndiGo, at a list price of $55 billion.
Those planes from the A320 family are not expected to be delivered until 2030-35.