KK Lee 5 Report post Posted March 12 (edited) Saudi Arabia’s Public Investment Fund is close to a deal for a large number of Boeing Co. commercial jets that will serve in the fleet of a new national airline, people familiar with the matter said. The Saudi sovereign-wealth fund is expected to announce the deal later Sunday amid the official launch of the airline, according to some of the people. Earlier in the day, the government announced the creation of the new carrier, Riyadh Air. Saudi Crown Prince Mohammed bin Salman said the new airline will take advantage of Saudi Arabia’s geographic location between the three continents of Asia, Africa and Europe, “enabling Riyadh to become a gateway to the world and a global destination for transportation, trade, and tourism.” Tony Douglas, who ran Abu Dhabi’s state-backed carrier Etihad for five years, was named chief executive of Riyadh Air. The Boeing BA 0.91%increase; green up pointing triangle aircraft order is valued at $35 billion, some of the people said. People with knowledge of the agreement said the mix is expected to include wide-body jets often used in long-haul international flying. Deals for new aircraft can fall apart even in their later stages. A potential Saudi order has been expected to involve as many as 100 airplanes or more, according to people briefed on the competition. Aircraft deals can include a mix of confirmed orders and options to buy more later. https://www.wsj.com/articles/saudi-sovereign-wealth-fund-close-to-deal-for-boeing-jets-943c1377 Edited March 12 by KK Lee Share this post Link to post Share on other sites
jani 0 Report post Posted March 14 Ex MH boss Peter Bellew has also joined as COO Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted March 14 58 minutes ago, jani said: Ex MH boss Peter Bellew has also joined as COO I wonder how many millions Saudi government paid Tony Douglas to move him from EY. He joined EY back in January 2018, left in end of 2022. Peter Bellew has been out of job since July 2022, after easyjet's disastrous operation summer that particular year. Rumours has it they will be placing an order for close to 80 B787-9 Dreamliner for both Riyadh Air and Saudia, with another 100 B737max for Riyadh Air. Saudi Arabia is currently investing SAR150 billion to set out in the PIF Program 2021-2025 – one of the Vision 2030 realisation programmes, aiming to unlock the capabilities of various sector to drive the diversification of its heavily dependent oil and gas economy. They will also get a new international airport, King Salman International Airport masterplan. it will span 57 square kilometers and have no less than six parallel runways with capacity for 120 million annual passengers by 2030, and 185 million annual passengers by 2050. Coupled with DOH, DXB and IST, I sure hope MAHB is sitting upright now with this new airline and airport. Competition is jacked up very high now which I think even Singapore Changi will have tough time to compete. Saudi has the trillions worth of money to burn, something Malaysia does not have. Share this post Link to post Share on other sites
Pall 0 Report post Posted March 14 Being Saudi based, Riyadh Air might surely be a dry airline with no 🍻 served. This might deter lot of western pax from travelling with them. Asians too. Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted March 14 1 hour ago, Pall said: Being Saudi based, Riyadh Air might surely be a dry airline with no 🍻 served. This might deter lot of western pax from travelling with them. Asians too. Thus far, all information are pointing towards Riyadh Air is "liberal" airline, alcohol will be served. Saudia remains dry airline. Riyadh Air will be based at Riyadh, Saudia at Jeddah. Flyadeal, Saudia low cost subsidiary is currently based at Jeddah too. Another LCC, flynas is currently based at Riyadh too. It will be suicidal for Riyadh Air to be dry airline if they want to attract all the Westerners, yuppies and expats. They are planning to outdo Dubai and Qatar with the Vision 2030 plan. Share this post Link to post Share on other sites
flee 5 Report post Posted March 14 Well EK has already cut exclusive deals for champagne - https://onemileatatime.com/news/emirates-champagne/ I think this new airline is established to compete with the ME3 - Saudia simply does not play in that league. So it will have to offer something comparable to the existing players. Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted March 14 New Saudi Arabian Carrier Riyadh Air to Launch with All-Boeing Fleet of up to 72 787-9 Dreamliners https://boeing.mediaroom.com/2023-03-14-New-Saudi-Arabian-Carrier-Riyadh-Air-to-Launch-with-All-Boeing-Fleet-of-up-to-72-787-9-Dreamliners Riyadh-based, PIF-owned airline to order 39 Dreamliners, with options for 33 more jets, enabling tourism and sustainable growth Passenger-pleasing, fuel-efficient 787s will support Saudi Arabia's goal of welcoming 100 million visitors per year by 2030 RIYADH, Saudi Arabia, March 14, 2023 /PRNewswire/ -- Boeing [NYSE: BA] and Riyadh Air announced today that the new Saudi Arabian carrier has chosen the 787 Dreamliner to power its global launch and support its goal of operating one of the most efficient and sustainable fleets in the world. Owned by Saudi Arabia's Public Investment Fund (PIF), Riyadh Air said it will purchase 39 highly efficient 787-9s, with options for an additional 33 787-9s. Based in the capital city, Riyadh Air will play a key role in growing Saudi Arabia's air transport network. Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted March 14 SAUDIA to Grow Long-Haul Fleet with up to 49 Boeing 787 Dreamliners https://boeing.mediaroom.com/2023-03-14-SAUDIA-to-Grow-Long-Haul-Fleet-with-up-to-49-Boeing-787-Dreamliners Saudi Arabian flag-carrier to order 39 fuel-efficient 787-9 and 787-10 airplanes Announcement including options for 10 additional jets is part of Saudi Arabia's broader investment to become a global aviation hub RIYADH, Saudi Arabia, March 14, 2023 /PRNewswire/ -- Boeing [NYSE: BA] and Saudi Arabian Airlines (SAUDIA) today announced the national flag-carrier will grow its long-haul fleet with the selection of up to 49 787 Dreamliners. SAUDIA is set to purchase 39 787s, with a further 10 options, utilizing the outstanding efficiency, range and flexibility of the Dreamliner to sustainably grow its global operation. The agreement will include both 787-9 and 787-10 models. This agreement is part of Saudi Arabia's wider strategic plan to transform the country into a global aviation hub. In total, Saudi Arabian carriers announced today their intent to purchase up to 121 787 Dreamliners in what will be the fifth largest commercial order by value in Boeing's history. This will support the country's goal of serving 330 million passengers and attracting 100 million visitors annually by 2030. Share this post Link to post Share on other sites
Chris Tan 0 Report post Posted March 14 6 hours ago, JuliusWong said: Thus far, all information are pointing towards Riyadh Air is "liberal" airline, alcohol will be served. Saudia remains dry airline. Riyadh Air will be based at Riyadh, Saudia at Jeddah. Flyadeal, Saudia low cost subsidiary is currently based at Jeddah too. Another LCC, flynas is currently based at Riyadh too. It will be suicidal for Riyadh Air to be dry airline if they want to attract all the Westerners, yuppies and expats. They are planning to outdo Dubai and Qatar with the Vision 2030 plan. It will take time for them to overcome the perception of Saudi Arabia. Many people do not like the thought of changing planes there, and there's only so much the new airline can do to change that. 5 hours ago, flee said: Well EK has already cut exclusive deals for champagne - https://onemileatatime.com/news/emirates-champagne/ I think this new airline is established to compete with the ME3 - Saudia simply does not play in that league. So it will have to offer something comparable to the existing players. If only there was a different brand of champagne they could serve... I suspect, in the medium term, they will tread along the lines of QR in the earlier years. Throw yields out of the window, offer cut throat prices with a real novelty factor, disrupt the market, then realise they have to turn a profit sooner or later. Share this post Link to post Share on other sites
jani 0 Report post Posted March 27 On 3/14/2023 at 8:05 PM, JuliusWong said: Thus far, all information are pointing towards Riyadh Air is "liberal" airline, alcohol will be served. Saudia remains dry airline. Riyadh Air will be based at Riyadh, Saudia at Jeddah. Flyadeal, Saudia low cost subsidiary is currently based at Jeddah too. Another LCC, flynas is currently based at Riyadh too. It will be suicidal for Riyadh Air to be dry airline if they want to attract all the Westerners, yuppies and expats. They are planning to outdo Dubai and Qatar with the Vision 2030 plan. I will be shocked if this new airline serves alcohol. Share this post Link to post Share on other sites
Chris Tan 0 Report post Posted March 28 20 hours ago, jani said: I will be shocked if this new airline serves alcohol. They haven't exactly been subtle with their goal to take on the ME3. How do you think they'll compete by being Saudia 2.0? Share this post Link to post Share on other sites
jani 0 Report post Posted March 28 3 hours ago, Chris Tan said: They haven't exactly been subtle with their goal to take on the ME3. How do you think they'll compete by being Saudia 2.0? Is alcohol the only defining factor to compete against ME3? It may happen, I'm just saying I will be totally shocked. Share this post Link to post Share on other sites
Riza 0 Report post Posted March 28 Sounds like reactions when QF wants to partner with EK quite some time ago. Share this post Link to post Share on other sites
Chris Tan 0 Report post Posted March 28 9 hours ago, jani said: Is alcohol the only defining factor to compete against ME3? If you want to be taken seriously on the international stage, you have to play by international standards. Running a dry airline relegates you to the same bin as SV/MS/KU etc. Share this post Link to post Share on other sites
jani 0 Report post Posted March 29 13 hours ago, Chris Tan said: If you want to be taken seriously on the international stage, you have to play by international standards. Running a dry airline relegates you to the same bin as SV/MS/KU etc. I guess that's the same line of thinking when Qatar hosted the World Cup. Share this post Link to post Share on other sites
