Riyadh Air Orders 60 Airbus Planes, Reconfirms 2025 Launch Plans

Saudi Arabian start-up airline Riyadh Air is buying 60 Airbus aircraft. The order, announced in the Saudi city on Wednesday, is for single-aisle A321neo jets.

The deal marks the end of an intense period of speculation regarding the future shape and size of the Riyadh Air fleet. It means that the airline will ultimately fly a mix of Airbus and Boeing planes across its network.

In 2023, the carrier placed its first aircraft order. The deal covered 39 Boeing 787-9 Dreamliners, with options for a further 33. An additional widebody contract is expected as momentum behind the airline gathers pace.

Speaking on CNN’s Quest Means Business on Tuesday night, Riyadh Air CEO Tony Douglas used a metaphor to describe the airline’s strategy when ordering aircraft:

“If you want to be a bear, be a grizzly. [There’s] no point in being a koala – even though they are very cute and very cuddly.” said the chief executive.

When is Riyadh Air Going to Launch?

Riyadh Air is wholly owned by Saudi’s Public Investment Fund (PIF), and forms part of an ambitious project to boost tourism to the country. The carrier has yet to start revenue service, with its first flights due in 2025. 

Yasir Al-Rumayyan, PIF Governor and Chairman of Riyadh Air said the Airbus deal will help establish Riyadh “as a major strategic global aviation hub.”

Delays to aircraft deliveries have affected airlines around the world. The problem is particularly acute for start-up operators such as Riyadh Air that are relying on new planes to grow. More established airlines can often continue flying older generation aircraft until new jets arrive – this isn’t an option for brand-new firms – particularly in a tight leasing environment.

“We’ll definitely be in the air next year. Obviously we’re working really hard with the whole of our supply chain – they’re working really hard with us. We’re a start-up with big ambition, and we’re confident that next year will be the special year for Riyadh Air,” Douglas told CNN. 

He added that the airline is “well on the way” to attaining its Air Operator Certificate (AOC). This is a mandatory document issued by regulators following intensive checks and testing of a company’s processes and procedures. Riyadh Air completed certification test flights at the start of October. 

Wednesday’s announcement took place at the FII Institute conference in Riyadh. The carrier also revealed major new digital-first initiatives, which Douglas described as “Version 1.0 of what a digital native airline looks like.” 

Where Will Riyadh Air Fly?

The airline’s deep pockets are matched by equally huge targets. Riyadh Air bosses previously said the carrier will fly to more than 100 destinations by the end of the decade. The company aims to serve most major cities, including those in the Americas, potentially adding up to $20 billion to the Kingdom’s economy in the process.

As well as operating routes with its own aircraft, Riyadh Air has struck a series of high-profile deals with some of the world’s biggest carriers including Delta Air Lines and Singapore Airlines.

Douglas previously said he expects another two agreements to be reached. One with a Western European airline and another with an operator in the Indian subcontinent. Both deals will be in place before the first Riyadh Air-branded aircraft takes to the skies next summer. 

Saudi Arabia has a tourism target of 150 million travelers by 2030, combining both international and domestic guests to hit that goal. Tourism chiefs are eyeing around 70 million international visits that same year. 

Watch Tony Douglas at the Skift Global Forum East 2023:

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