Boeing Wins Huge 787 Order From Riyadh Air, Saudia
Helen Massy-Beresford March 14, 2023
Riyadh Air CEO Tony Douglas (left) and Boeing SVP
Commercial Sales and Marketing Brad McMullen (second right) hold up signed
contracts as PIF's governor Yasir AlRumayyan (second left), Saudi
Arabia's U.S. Ambassador Princess Reema Al Saud (center) and Boeing CEO Dave
Calhoun (right) applaud.
Credit: Riyadh Air
Saudi Arabian flag carriers Riyadh
Air and Saudia have placed orders for up to a combined 121 Boeing 787s in what
could amount to the fifth largest commercial order by value in the OEM’s
history.
The 787s will be powered by GE
Aerospace GEnx engines, according to the U.S. Secretary of Commerce.
The Saudi Arabian state-owned
carriers said they will order 78 787s with options for a further 43 aircraft.
The new orders will be posted to Boeing’s Orders and Deliveries website once
finalized, Boeing said.
Finalizing both orders would boost
Boeing’s 787 backlog 14% and fill delivery slots being created by a planned
production ramp-up. The company has been building 787s at a rate of about two
per month recently, and is targeting five per month in 2024, climbing to 10 per
month in 2025-26. Boeing’s 787 firm-order backlog stood at 574 aircraft on
March 1, including 59 in the ASC 606 accounting category that flags them as on
shaky ground due to customer issues.
The newly launched Riyadh Air said
it would purchase 39 787-9s for its global launch, with options for an
additional 33 787-9s. The -9 is the longest-range model in the 787 family.
Saudia will purchase 39 787
widebodies with a further 10 options. The agreement will include both 787-9 and
787-10s.
Both deals form part of Saudi
Arabia’s broader strategic plan to create a global aviation hub, with an
objective of serving 330 million passengers and attracting 100 million visitors
annually by 2030.
Saudia already operates more than 50
Boeing aircraft on its long-haul network, including 777-300ERs, 787-9s and
787-10s. “The additional 787s complement Saudia’s existing fleet, enabling it
to effectively harness the value of the 777 and 787 families,” Boeing said
March 14.
“Saudia continues its expansion
efforts in all aspects of the airline, whether it’s introducing new
destinations or increasing the aircraft fleet,” said Ibrahim Al-Omar, Director
General of Saudia Group.
“Adding to its 787 Dreamliner fleet
will enable Saudia to expand its long-haul service with outstanding range,
capacity and efficiency,” said Stan Deal, President and CEO of Boeing
Commercial Airplanes. The 787 offers around a 25% reduction in fuel burn and
emissions compared to the Saudia aircraft it will replace, Boeing said.
Riyadh Air, which is owned by Saudi
Arabia’s Public Investment Fund (PIF) and whose CEO is former Etihad Airways
CEO Tony Douglas, has been set up to play a key role in growing Saudi Arabia’s
air transport network, which are part of the Kingdom’s strategy of diversifying
away from oil.
Saudi Arabia’s Crown Prince Mohammad
bin Salman formally launched Riyadh Air March 12.
“The new airline reflects the
ambitious vision of Saudi Arabia to be at the core of shaping the future of
global air travel and be a true disrupter in terms of customer experience,”
Douglas said. “By positioning the airline as both a global connector and a
vehicle to drive tourist and business travel to Saudi Arabia, our new 787-9
airplanes will serve as a foundation for our worldwide operations as we build
the wider network and connect our guests to Saudi Arabia and many destinations
around the world.”
U.S. Secretary of Commerce Gina
Raimondo said the orders are “a clear win for American manufacturers and
workers, supporting more than 140,000 jobs at over 300 Boeing suppliers across
38 states. Moreover, the Kingdom of Saudi Arabia has selected GE Aerospace’s
GEnx engine to power the aircraft, providing billions more in U.S. exports and
supporting good-paying American jobs.”
Raimondo said the deal was one of
the largest commercial agreements in the long history of the U.S.-Saudi
partnership, noting that in 1945 President Franklin D. Roosevelt provided King
Abdulaziz al Saud with Saudi Arabia’s first airplane, a DC-3 Dakota.
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