The Kingdom of Saudi Arabia is in advanced negotiations with European aerospace manufacturer Airbus to purchase up to forty A350 aircraft, according to industry sources quoted by Reuters.
If confirmed, the order could be officially announced at the Future Investment Initiative (FII) forum, to be held between 25 and 27 October in Riyadh.
The order would be part of the current project to launch a new Saudi Arabian national airline, RIA. The company would compete with the major operators in the Persian Gulf. At list prices, the order could reach a total value of twelve billion dollars. The country’s Public Investment Fund (PIF) would provide the money.
This investment body is part of Crown Prince Mohammad bin Salman’s Vision 2030 plan to develop and grow new industries and reduce dependence on oil in the Saudi economy. The creation of a new airline would be one of the actions in this direction. Saudi Arabia already has a national airline, Saudia (formerly Saudi Arabian), based in Jeddah.
However, a new national carrier would strengthen the kingdom’s position in the region’s airline market, which is dominated by major companies such as Emirates, Etihad and Qatar Airways. Saudi Arabia plans to create new hubs to compete with neighbouring United Arab Emirates and Qatar.
According to the weekly business publication Arabian Business, the new Saudi airline could have more than 150 routes and a presence in 80 countries. The company would strengthen the kingdom’s air links to markets such as Africa and Asia-Pacific. However, any commercial agreement on aircraft orders will have to obtain prior state approval.
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