Saudi Arabia’s airline orders 100+ Airbus jets to attract tourists

Saudi Arabia’s national airline, Saudia Group, has placed a significant order for over 100 new Airbus jets, highlighting the kingdom’s strong push to attract more tourists.

The Saudia Group, which includes both the Saudia airline and its low-cost carrier Flyadeal, announced on Monday that it has ordered 105 aircraft from Airbus’s A320neo family. This order consists of 12 A320neos and 93 A321neos, bringing the total backlog of A320neo family planes for the Saudia Group to 144.

The airline group stated that it plans to increase flights and seat capacity across its existing network of more than 100 destinations. This move aligns with Saudi Arabia’s objective of welcoming over 150 million tourists by the year 2030.

In its latest annual earnings report in February, Airbus reported strong performance in its commercial aircraft sector and set a goal to deliver 800 commercial planes in 2024, an increase of 67 from the previous year.

This success for Airbus contrasts with the challenges faced by its U.S. competitor, Boeing. While Boeing was recovering from two tragic Max jet crashes in 2018 and 2019 that resulted in 346 fatalities, another setback occurred on January 5 when a door plug blew out of an Alaska Airlines 737 Max 9. This incident has further impacted the company’s stability.

Airbus has gained an edge with its A321neo, a single-aisle aircraft seating between 180 and 230 passengers. The “neo” designation refers to new engine options that are highly fuel-efficient, helping airlines reduce one of their major expenses. Boeing attempted to compete with its 737 Max, featuring new, more efficient engines, but has encountered numerous technical problems.

Despite Boeing’s difficulties, Airbus is unlikely to widen its lead in the market much further due to its current production capacity limits, with a backlog of over 8,600 orders to fulfill.