Summary
- Saudia plans to raise capital for aircraft acquisitions to support its ongoing fleet expansion.
- The state-owned airline is looking to carry 30 million tourists to Mecca by 2030 as part of Saudi Arabia’s Vision 2030 strategy.
- The carrier already has several aircraft on order, including Airbus narrowbody and Boeing widebody jets.
Newly rebranded Saudia is reportedly interested in raising capital for aircraft acquisitions amid fleet expansion plans. The carrier, the largest in Saudi Arabia, is weighing its options, including a debut bond sale.
Over the next seven years, Saudia hopes to double the amount of aircraft currently in its fleet. The airline reportedly has 70 aircraft on order, including the Airbus A321neo.
Carrying millions of passengers
According to Bloomberg, Saudia’s Director General Ibrahim Alomar said the airline “will go out to the market” as they are “evaluating the options.” However, the exact amount of funding has yet to be determined and is still being considered.
Intending to carry 30 million tourists to Mecca by 2030, the state-owned airline is looking to expand its fleet from 177 aircraft to more than 300. Determined to hit the target, Alomar noted that Saudia could announce new aircraft orders in 2024. But for now, the carrier already has financing secured to cover its needs until around the middle of next year, accordingto the Director General who spoke to Bloomberg.
Large growth targets
The goal of 30 million passengers is reportedly part of a broader strategy by the government to attract 70 million visitors from around the world. Saudia Arabia’s Vision 2030 strategy has ambitious growth targets, including 250 destinations connected over 29 airports and accommodating 330 million annual passengers through two global long-haul connection hubs.
Photo: Saudia
Saudia said the Vision 2030 strategy aims to redevelop Saudia Arabia “into a leader in the global industry” by enhancing the experience for travelers, improving safety, and supporting environmental sustainability.
Airline partnership and aircraft on order
According to ch-aviation, the country looks to welcome millions of visitors with upgrades to airports and by establishing new airlines such as NEOM Airlines, a carrier expected to launch next year, and Riyadh Air, a new airline launched by the Kingdom’s wealth fund. Saudia reportedly partnered with Riyadh Air in March to purchase more than 120 Boeing 787 Dreamliners between the two carriers. According to Bloomberg, the airlines will operate independently but could work together for aircraft maintenance and other services.
Saudia already has 70 Airbus and Boeing aircraft on order, according to ch-aviation. Orders this year comprise 18 787-9s and 21 larger 787-10 variants, in addition to 16 Airbus A321neos and 15 A321XLRs. The NEOs will be going to Saudia’s low-cost subsidiary flyadeal, as reported by ch-aviation, but in July, the airline announced that it was looking to add 20 more A321neos to its fleet by 2026.
Photo: Saudia
“Our priority is to offer the best guest experience possible and to bring the world to Saudi Arabia, and we will continue to purchase state-of-the-art aircraft from the world’s top manufacturers to deliver on that promise,” Saudia’s CEO Ibrahim Koshy said.
Saudia Arabia is considered one of the fastest-growing tourism hubs worldwide, according to the Air Connectivity Program (ACP), an initiative founded two years ago that supports tourism and growth by enhancing air connectivity and developing existing and prospective routes.
Last week, Saudia revealed its new brand incorporating a revised logo and font used by the airline from the 1970s to the 1990s. The carrier said the rebranding reflects a “long-planned digital transformation” that “fully improves the customer experience.”
Sources: Bloomberg, ch-aviation, Air Connectivity Program