Riyadh Air, the ambitious new Saudi Arabian airline poised to launch operations later this year, has openly declared its readiness to acquire Boeing aircraft that were originally destined for Chinese carriers but face potential delivery disruptions due to the escalating trade tensions between the United States and China. Tony Douglas, the Chief Executive Officer of Riyadh Air, made this assertive statement on Monday, highlighting a potential strategic opportunity arising from the geopolitical landscape.
Douglas's remarks come at a critical juncture where Boeing finds itself navigating the complexities of international trade disputes. The US aerospace giant is reportedly exploring options to resell aircraft that have been effectively locked out of the Chinese market due to tariffs and related trade barriers. This situation escalated recently when Boeing repatriated a third jet intended for China back to the United States, a move that further intensified the ongoing criticism of Beijing from US President Donald Trump regarding trade imbalances.
Speaking with Reuters on the sidelines of the Arabian Travel Market conference in Dubai, Douglas conveyed Riyadh Air's clear interest: "What we’ve done... is made it quite clear to Boeing, should that ever happen, and the keyword there is should, we’ll happily take them all." This statement underscores the Saudi airline's proactive approach to fleet acquisition and its potential to capitalize on unforeseen shifts in the global aviation market.
Boeing, recognizing the fluidity of the situation, had already indicated during a recent analyst call that it anticipated strong demand for its aircraft in the current market, suggesting that finding alternative buyers would not be a significant hurdle. This confidence is likely bolstered by the robust recovery in air travel demand globally and the ongoing need for fleet modernization and expansion among airlines worldwide.
Riyadh Air, backed by the substantial financial resources of Saudi Arabia’s Public Investment Fund, has been strategically building its fleet with orders from both major aircraft manufacturers, Boeing and Airbus. The airline's existing commitments include an order for 60 Airbus A321-family narrow-body jets placed in October of the previous year, and a significant order for up to 72 Boeing 787 Dreamliner wide-body aircraft announced in March 2023. This diversified approach to fleet acquisition demonstrates Riyadh Air's ambition to establish a comprehensive network catering to a wide range of routes and passenger demands.
Despite the broader global macroeconomic uncertainties that have cast a shadow over various industries, Douglas expressed optimism regarding the demand for travel to and from the Kingdom’s capital. He stated that Riyadh Air has not yet witnessed any adverse impact on travel appetite. Furthermore, the airline has ambitious plans for further expansion, with an anticipated announcement of an order for additional wide-body jets slated for this summer. This continued investment in fleet growth underscores Saudi Arabia's commitment to developing its aviation sector as a key pillar of its economic diversification strategy.
Riyadh Air is actively progressing towards its planned launch in the fourth quarter of the current year. The airline has already recruited 500 employees and intends to nearly double its workforce to 1,000 within the next 9 to 12 months. Following this initial phase of recruitment, the airline will focus on hiring pilots and cabin crew in a phased manner, aligning with the anticipated delivery schedule of its growing fleet.
Saudi Arabia's strategic vision extends beyond simply establishing a new airline. The Kingdom is making substantial investments in giga-projects and infrastructure development to attract a larger share of the global travel industry, including the lucrative business travel segment. A key route in this context is the Dubai to Riyadh corridor, a high-frequency route often utilized by professionals in finance, law, consulting, and the influencer community. Douglas highlighted the profitability of this less than two-hour flight, describing it as one of the world’s most lucrative routes for airlines based on revenue per kilometer.
In a broader regional context, Douglas also commented on the recent resumption of flights from the UAE into Syria and the subsequent use of Syrian airspace. He suggested that this development "is probably a signal that things are at the margin moving in the right direction," hinting at potential improvements in regional stability and connectivity. This observation underscores the interconnectedness of the aviation industry with broader geopolitical developments in the Middle East.