- The largest airline in Saudi Arabia is considering various options, including initiating its first-ever bond sale, to secure funding for purchasing new aircraft as it plans to nearly double its fleet by 2030. "We are exploring different avenues in the market," stated Ibrahim Alomar, the Director General of Saudi Arabian Airlines, during an interview. He also mentioned that they are still deliberating on the exact size of the required funding.
- Saudia, the government-owned airline, aims to expand its current fleet of 177 aircraft to 317, as part of its strategy to accommodate 30 million religious tourists visiting Mecca by 2030 and to support the government's broader objective of attracting 70 million international visitors. Alomar added that they may announce new aircraft orders next year in pursuit of this goal. He also clarified that the airline has financing in place to meet its needs until mid-2024.
Why it matters
In March, Saudia partnered with Riyadh Air, a new airline backed by the kingdom's sovereign wealth fund, to potentially purchase up to 121 Boeing 787 Dreamliners between the two carriers. While the airlines will maintain their independence, they plan to collaborate in areas such as maintenance and other services, as explained by Alomar.