Saudia Group Orders 105 Airbus Jets in Record $19 Billion Deal

By Thea Felicity

May 20, 2024 03:02 PM EDT

FRANCE-AVIATION-ECONOMY — A picture taken on September 27, 2019 at the Airbus delivery center in Colomiers, southwestern France, shows a logo of Aircalin airline based in New Caledonia.
(Photo : PASCAL PAVANI/AFP via Getty Images)

The Crown Prince Mohammed Bin Salman's Vision 2030 program has long been aiming at diversifying Saudi Arabia's economy away from oil dependency, according to VCPost, with tourism being a key component.

Saudia had hinted at a major order for narrow-body jets but had not specified the manufacturer until now.

According to Reuters, Saudia Group is embarking on a historic order for 105 Airbus narrow-body aircraft, a move that strategically aligns with their fleet expansion plans and the Vision 2030 program. The deal includes 12 A320neo and 93 A321neo single-aisle aircraft, marking it as the largest order ever recorded. Saudia will first receive 54 of the A321neo jets, while flyadeal will acquire 12 A320neos and 39 A321neo aircraft.

While the financial details of the deal between Saudia Group and Airbus have not been disclosed, industry experts estimate its value to be around $19 billion. This significant investment, coupled with the potential for discounts on large orders, underscores the economic impact of Saudia Group's historic order.

This purchase means Saudia Group now has 144 Airbus A320neo family aircraft on order.

Why Airbus?

Steven Greenway, CEO of Flyadeal, mentioned that they chose Airbus to maintain consistency with their current fleet strategy. At the same time, Saudia Group's Director General, Ibrahim Al Omar, stated that the deliveries of these aircraft will start in the first quarter of 2026 and finish by 2032.

However, the aviation industry is currently grappling with delivery delays for Airbus's A320neo jets, a challenge that Saudia Group is not immune to. Steven Greenway, CEO of Flyadeal, acknowledged this issue, expressing frustration over the delays and emphasizing that they are beyond their control. This situation underscores the complexities of managing large-scale orders in the aviation sector.

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