Riyadh Air Eyes Expansion with Major Widebody Aircraft Order in 2025

Riyadh Air is set to bolster its fleet with a significant widebody aircraft order next year, signaling its ambition to expand its global footprint.

Riyadh Air (RXI) announced on Monday, November 4, 2024, its intention to place a substantial order for widebody aircraft in 2025. This follows the airline’s recent commitment to acquiring sixty A321neo family aircraft earlier this week. CFO Adam Boukadida revealed these plans during the Future Investment Initiative forum, highlighting Riyadh Air’s strategic approach to fleet diversification and expansion.

“We will do our third request for proposal for an ultra-widebody, which has in excess of 300 seats, but that will be next year,” Boukadida stated. “It could be Boeing, it could be Airbus. At the moment, we’re very happy having the relationship with both of these key suppliers.”

Building on Previous Orders

Earlier in June, during an interview with ch-aviation at the IATA AGM, Boukadida hinted at Riyadh Air’s interest in larger aircraft beyond the Boeing 787. The airline is considering models such as the Boeing 777 or Airbus A350-1000 to meet its growing demand and operational needs.

Riyadh Air’s initial order in 2023 included thirty-nine Boeing 787-9s, with options for an additional 33 aircraft. This aggressive acquisition strategy underscores the airline’s goal to operate by the northern summer of 2025, with plans to serve 100 routes by 2030 and expand to over 120 routes by 2035.

Flexibility and Performance Drive Aircraft Selection

At the Future Investment Initiative forum, CEO Tony Douglas emphasized the importance of performance and flexibility in Riyadh Air’s narrowbody orders. “It’s about performance,” Douglas explained. “For us, the performance of the A321neo family is exceptional because there is a regular A321neo, a long-range variant, and an extra-long-range variant. That gives us the flexibility to configure the order with the missions we want to operate.”

This focus on versatile aircraft options allows Riyadh Air to tailor its fleet to various route demands and operational requirements, enhancing efficiency and passenger experience.

Financial Strength and Support for Growth

In addition to expanding its fleet, Riyadh Air has secured a substantial financial backing to support its growth. The airline announced the successful closure of a self-arranged Islamic one-year unsecured revolving credit facility totaling SAR3 billion (USD788.9 million). This funding was confirmed at the Future Investment Initiative forum and will aid in aircraft acquisitions and short-term working capital needs ahead of the airline’s launch.

Boukadida highlighted the importance of this financial maneuver: “This financing not only strengthens our liquidity but also aligns with our strategy to maintain financial discipline as we approach our operational debut.”

The facility was supported by major financial institutions, including the Arab National Bank, Al Rajhi Bank, Gulf International Bank, Emirates NBD, Riyad Bank, Banque Saudi Fransi, Saudi Awwal Bank, and the Saudi National Bank. Additionally, the credit facility includes a committed accordion option for an extra SAR2 billion (USD532.6 million), providing Riyadh Air with further financial flexibility.

Collaborations and Future Prospects

Riyadh Air’s partnerships with key suppliers like Boeing and Airbus, along with robust financial support, position the airline for a successful launch and sustainable growth. The planned widebody order will enable Riyadh Air to cater to long-haul routes, enhancing its competitive edge in the global aviation market.

“As we move forward, our focus will be on refining our technology and expanding our reach to help more passengers achieve seamless and comfortable travel experiences,” said Douglas. The upcoming order is a testament to Riyadh Air’s commitment to excellence and innovation in the aviation industry.

Preparing for a Global Launch

With the operational debut scheduled for early summer 2025, Riyadh Air is meticulously planning its entry into the competitive airline market. The widebody aircraft will play a crucial role in establishing the airline’s presence on international routes, ensuring it meets the high standards expected by global travelers.

Riyadh Air’s strategic investments in both narrowbody and widebody fleets, coupled with strong financial backing, set the stage for its ambitious expansion plans. The airline is poised to become a significant player in the aviation sector, offering a blend of performance, flexibility, and reliability.

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