Saudi Arabian Airlines, known as Saudia, is considering placing an order for widebody planes next year that will fuel expansion plans with its low-cost unit Flyadeal by 2030, as part of the kingdom’s push to become a global transport hub.
The carrier is in “very advanced talks” with Boeing and Airbus for its plane order, with a decision to be made in early 2022, Ibrahim Koshy, chief executive of Saudia, told The National at the Dubai Airshow on Sunday.
The airline is in the final stages of deciding between aircraft models, with the Airbus A350s and Boeing 787s and 777X under consideration, he said.
The discussions with Airbus and Boeing also includes freighters such as the A350 freighter version and 777X freighter variant, Mr Koshy said.
Saudia aims to grow its fleet to 250 aircraft in the next eight years (excluding Flyadeal), up from about 150 jets currently, he said. It now has in its fleet a mix of Boeing 777s and 787s as well as Airbus A320 family jets and A330s, according to its website.
The airline plans to expand with Flyadeal to about 200 destinations by 2030, up from the 90 routes served in 2019 prior to the pandemic, Mr Koshy said.
Saudia will require widebody aircraft to serve the mainly international new routes it plans to open by 2030, with expected growth in Europe, the Americas and Asia-Pacific, the chief executive said.
Asked about how the airline plans to pay for the potential order, Mr Koshy said commercial banks in Saudi Arabia have been open to aircraft financing deals.
Saudia’s expansion ambitions comes as the kingdom prepares to launch a new state-owned airline based in Riyadh, while Saudia will focus on developing its Jeddah hub.
“Saudi Arabian airlines with the growth that is projected in religious traffic to 35 million passengers annually, plus the expected growth for the western region of Saudi Arabia all the way from Neom, Amaala, the Red Sea development and all the new resorts that are coming, the targeted growth is quite substantial,” Mr Koshy said. “There’s substantial growth targeted for the western region. We would focus on serving that market."
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Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, watches aerobatic displays at Dubai Airshow. Photo: Dubai Media Office -
Sheikh Mohammed visited the Dubai Airshow on day one. Photo: Dubai Media Office -
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, receives official delegations at Dubai Airshow. Photo: Dubai Media Office -
Sheikh Mohammed receives ministers of defence and chiefs of staff of countries participating in Dubai Airshow. Photo: Dubai Media Office -
The Russian Knights perform. Chris Whiteoak / The National -
Telal International design and manufacture pilot and steward uniforms. The company is exhibiting at the airshow for the first time. Chris Whiteoak / The National -
A visitor takes pictures of the Russian Knights. Chris Whiteoak / The National -
Dubai Airshow begins at Dubai World Central. Photo: Dubai Media Office -
Crowds at the Dubai Airshow. Chris Whiteoak / The National -
An Etihad Airbus A350-1041, in special livery to celebrate the UAE's Golden Jubilee, at the Dubai Airshow, with a Boeing 777X in the background. Chris Whiteoak / The National -
A Thunder B-VTOL unmanned aerial vehicle system at the Israel Aerospace Industries stand at the Dubai Airshow. Chris Whiteoak / The National -
The Al Tariq series at The Edge stand at the Dubai Airshow. Chris Whiteoak / The National -
The new suite at the Emirates stand at the Dubai Airshow. Chris Whiteoak / The National -
Members of the Navy attend the airshow. Chris Whiteoak/ The National -
The Russian Knights perform at the airshow. Chris Whiteoak/ The National -
A model of the Airbus A400M at the Dubai Airshow. Chris Whiteoak/ The National -
Official delegations at Dubai Airshow. Photo: Dubai Media Office -
The show gets off to a flying start. Photo: Dubai Media Office -
A Boeing 777-X at the airshow. Chris Whiteoak / The National -
Dubai Airshow begins at Dubai World Central. Photo: Dubai Media Office -
Jets impress the crowds. Photo: Dubai Media Office -
Boeing's newest 777X wide-body aircraft makes its international debut at Dubai Airshow. Photo: Dubai Media Office -
An aerobatic display at Dubai World Central. Photo: Dubai Media Office -
The show begins. Photo: Dubai Media Office
The airline expects to return to profitability by 2023 to 2024, once it achieves pre-Covid levels of passenger traffic growth, he said.
“We’re coming out leaner and stronger and committed to sustainability,” Mr Koshy said. The airline's sustainability goals are in line with the kingdom’s target of reaching net-zero carbon emissions by 2060, he said.
The airline did not seek state aid to help it weather the Covid-19 crisis, according to the chief executive.
“We started with a very strong balance sheet at the beginning of the pandemic and we were able to see ourselves through without going and requesting support that would be a burden on government, without taking anything that was specifically for the airline industry,” he said.
Saudia’s strong domestic market was able to sustain it well during the pandemic and the ensuing restrictions on international travel, he said.
