Skift hold

After months of speculation about its narrow-body fleet, Saudi start-up Riyadh Air finally revealed the supplier and size of its first order for single-aisle planes on Wednesday.

Gordon Smith

Saudi start-up Riyadh Air buys 60 Airbus planes. The order, announced Wednesday in the Saudi city, concerns A321neo single-aisle aircraft.

The agreement marks the end of an intense period of speculation regarding the future shape and size of Riyadh Air’s fleet. This means that eventually the airline will fly a combination of Airbus and Boeing aircraft on its network.

In 2023, the carrier placed its first order for aircraft. The deal was for 39 Boeing 787-9 Dreamliners, with options on 33 more. An additional widebody contract is expected as momentum behind the airline picks up.

Speaking on CNN Quest Means Business On Tuesday evening, Tony Douglas used an animal metaphor to describe the airline’s strategy when ordering planes:

“If you want to be a bear, be a grizzly.” (There’s no point in being a koala – even though they’re very cute and cuddly) says Douglas.

When will Riyadh Air be launched?

Riyadh Air is fully owned by the Saudi Public Investment Fund (PIF) and is part of an ambitious project to boost tourism in the country. The carrier has not yet started the revenue servicewith its first flights planned for 2025.

Yasir Al-Rumayyan, PIF governor and chairman of Riyadh Air, said the agreement with Airbus will help make Riyadh “a global strategic aviation hub”.

Delays in aircraft deliveries have affected airlines around the world. The problem is particularly acute for start-up operators such as Riyadh Air, which rely on new aircraft to expand. More established airlines can often continue to operate older generation aircraft until new aircraft arrive – this is not an option for brand new businesses – especially in a tight leasing environment.

“We’ll definitely be in the air next year.” Obviously we work very hard with our entire supply chain – they work very hard with us. We are a start-up with big ambitions and we are confident that next year will be a special year for Riyadh Air,” Douglas told CNN.

He added that the airline is “well on track” to obtain its Air Operator Certificate (AOC). It is a mandatory document issued by regulators following intensive checks and testing of a company’s processes and procedures. Riyadh Air conducted certification test flights in early October.

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

Where will Riyad Air fly?

The airline’s deep pockets match equally enormous goals. Riyadh Air bosses previously said the company would serve 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.

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

Douglas previously said he expected two more deals to be completed. One with a Western European airline and the other with an operator from the Indian subcontinent. Both agreements will be concluded before the first Riyadh Air brand aircraft takes flight next summer.

Saudi Arabia has a tourism objective of 150 million travelers by 2030, combining international and national guests to achieve this goal. Tourism officials anticipate about 70 million international visits that same year.

Watch Tony Douglas at Skift Global Forum East 2023: