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The order consists of 12 A320neo and 93 A321neo single aisle aircraft
Published : 20 May 2024, 09:36 PM
Saudia Group, owner of the Saudia airline and budget carrier fly a deal, announced on Monday an order for 105 Airbus, opens new tab narrow-body aircraft in what the company's director general described as the largest ever order from a Saudi airline.
The order consists of 12 A320neo and 93 A321neo single aisle aircraft. State-owned Saudia Group said that Saudia would be receiving 54 of the A321neo jets, while flyadeal would acquire 12 A320neos and the remaining 39 A321neo aircraft.
Neither Saudia Group nor Airbus disclosed the value of the deal, however, the Future Aviation Forum in Riyadh where the order was announced said the record Saudi order was worth $19 billion.
Planemakers typically offer discounts on large orders.
Saudia Group's backlog of Airbus jets now stands at 144 of the A320neo family aircraft, Airbus said in a statement.
"Airbus is the short haul manufacturer that we both use, in terms of Saudia and ourselves, this is an add-on order," said flyadeal Chief Executive Officer Steven Greenway, explaining why they chose to go with the European manufacturer.
Saudia Group Director General Ibrahim Al Omar said the planes would start being delivered from the first quarter of 2026. Saudia Group said the last would be delivered in 2032.
Airbus has been struggling with delivery delays for its best-selling A320neo family of jets in 2024. Greenway acknowledged the issue, but said that it extended across the aviation sector.
"It's public knowledge there have been constraints and delivery delays for everyone," said Greenway, "I don't like it. No one else likes it. It is what it is. What can you do?"
"It is frustrating, you know we have got an aircraft at the moment that has been delayed for a month and a half for all sorts of reasons," he added.
State-owned Saudia plans to expand rapidly over the next seven years as part of Crown Prince Mohammed Bin Salman's Vision 2030 programme to wean the kingdom off its oil dependence. Tourism is a key pillar of the economic diversification strategy.
In November, Saudia said it was close to an agreement on an order for 100 narrow-body jets but wanted the manufacturer to agree to supply an additional 50-plus jets. It did not specify the manufacturer at the time.
