Saudia Group is negotiating with Airbus and Boeing to order wide-body jets to boost capacity as narrow-body aircraft production slots are limited, a spokesperson for the group told Reuters.
The state-owned group, which owns Saudia Airlines and budget carrier flyadeal, ordered 105 narrow-body Airbus planes last month but needed 180, said Saudia Group’s general manager of communications and media affairs, Abdullah Alshahrani.
Post-pandemic air travel is booming, and demand for aircraft exceeds production as supply chains struggle to keep up. In January, Airbus announced that it is fully booked for single-aisle jets until the decade’s end.
The lack of production slots at Airbus, particularly for the A320, prompted the group to consider wide-body jets, Alshahrani said in an interview at the CAPA India aviation conference in New Delhi on Thursday.
Alshahrani mentioned that the group was “fortunate” to secure the 105-plane order with Airbus but requires more aircraft, considering Boeing 787 and Airbus A330 models.
The number of wide-body jets under consideration for both Saudia Airlines and flyadeal is still being discussed, but Saudia Group intends to place an order this year, he added.
Earlier this week, flyadeal’s CEO told Reuters that the airline is exploring a potential order for 10 to 20 wide-body jets.
Saudi Arabia is investing heavily to diversify its economy from fossil fuels and has ambitious aviation plans, including new airlines, jet orders, and a possible major international airport to compete with regional rival, the UAE.
The kingdom is also encouraging China’s COMAC to establish a local production facility as the Chinese manufacturer aims to expand internationally and compete with Airbus and Boeing.
Alshahrani stated that Saudia Group plans to visit COMAC’s facility in China in September to evaluate the jets for future consideration, though it is “not the time” to place an order.
Saudia Group Eyes Expansion with 200 New Planes, Increased Focus on India Market
COMAC’s planes currently fly almost exclusively within China and have not yet received key certifications from the United States or the European Union.
Saudia Group currently serves 100 destinations and aims to expand to 150 by the end of the decade with the delivery of 200 new planes, including Airbus A321XLRs.
India is a key growth market for Saudia Group, which aims to regain market share lost to competitors with more direct flights, new destinations, and enhanced plane cabins.
Alshahrani also said the group is negotiating a codeshare agreement with Air India.
“We want to work closely with Indian carriers on various types of cooperation to provide better options for Indian and Saudi passengers,” he said.
