According to Saudi Arabia, it has signed two contracts with American aircraft manufacturer Boeing for 121 Boeing 787 Dreamliners for the new airline Riyadh Air and the existing national airline Saudi Arabia.
The Saudi Arabian Embassy in Washington said in a statement that the contract is the fifth largest commercial order in Boeing’s history by value.
According to the White House, the contract for these 121 aircraft is worth 37 billion dollars.
Riyadh Air was announced by Crown Prince and Prime Minister of Saudi Arabia, Prince Mohammed bin Salman on Sunday.
About 39 aircraft have been confirmed for the new airline with an option to acquire 33 more aircraft.
Riyadh Air is wholly owned by the Saudi Public Investment Fund (PIF).
Riyadh Air and Boeing deal:
– 39 confirmed 787-9 Dreamliners and options for 33 additional airplanes
– Expected to support nearly 100,000 direct and indirect jobs in the US
– The first deliveries of the widebody aircraft are scheduled for early 2025https://t.co/EpeuT1JLCy pic.twitter.com/7NYjg67F3P
— Saudi Gazette (@Saudi_Gazette) March 14, 2023
Yasir Al Rumiyan, Governor of the Fund and Chairman of Riyadh Air, said that this is an important day for PIF and Riyadh Air, which is an expression of our commitment to significantly improve Saudi Arabia’s connectivity with the world. will be extended.’
He said: ‘Our commitment is to build a world-class airline and this partnership with Boeing in building its fleet is the next step in achieving Saudi Arabia’s ambitions as a global transportation hub.’
“We look forward to developing strong strategic relationships within the broader aviation ecosystem as we continue to build new airlines to join the world‘s leading carriers,” he added.
Stan Dale, President and CEO of The Boeing Company, welcomed this ‘significant order’ and added, ‘We are extremely proud of our nearly eight decades of contribution to driving innovation and sustainable development in Saudi Arabia’s aviation sector. Proud.’
“Our agreement builds on this long-standing partnership and will further expand access to safe and sustainable commercial air travel for decades to come,” he said.
According to a statement from White House Press Secretary Kirin-Jean-Pierre, Boeing and Saudi Arabia have been in talks for years and the agreement was reached after negotiations in recent months.
“Today’s announcement ensures that Boeing and General Electric will support the construction of a new international airport as well as Saudi Arabia’s new international airline,” he said.
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According to him: ‘This partnership is a milestone in eight decades of cooperation between Saudi Arabia and the American company. Our administration looks forward to working with Saudi Arabia and all partners in the Middle East to support a more prosperous, secure and integrated region that will ultimately benefit the American people.”
Riyadh Air CEO Tony Douglas described the new airline as a reflection of Saudi Arabia’s vision to shape the future of global air travel.
In November last year, the authorities announced plans for a new airport in the capital, Riyadh, spread over 57 square kilometers.
It is set to facilitate 12 crore passengers by 2030 and 18.5 crore passengers by 2050.
The current airport capacity of Riyadh is about 3.5 million passengers.
According to a statement by the Saudi Press Agency, Riyadh Air is ready to make the Saudi capital a gateway to the world and a global hub for transportation, trade and tourism.
Riyadh Air aims to expand customer travel and connect them to more than 100 destinations worldwide by 2030.
This new airline is expected to add $20 billion to the Saudi GDP as part of the policy to reduce oil dependence and create more than 200,000 direct and indirect jobs.
This airline will provide tourists from all over the world with the opportunity to visit the cultural and natural places of Saudi Arabia.
This will help make the aviation industry globally competitive in line with the Crown’s Vision 2030.