Saudi Press

Saudi Arabia and the world
Thursday, Mar 28, 2024

Boeing nabs order for 78 787 Dreamliners from two Saudi airlines

Boeing nabs order for 78 787 Dreamliners from two Saudi airlines

Two Saudi Arabian airlines announced plans on Tuesday to order a combined 78 Boeing 787 Dreamliners, a big win for Boeing (BA.N) that marks the fifth largest commercial order by value in its history.
State-owned Saudi Arabian Airlines (Saudia) and new national airline Riyadh Air will each buy 39 widebody 787s from the U.S.-based planemaker.

The deal contains options for 10 additional Dreamliners for Saudia and 33 for Riyadh Air. Reuters reported details of the planned order on Monday, citing sources.

The list prices for 78 planes would total nearly $37 billion, Reuters previously reported.

Boeing Chief Executive Dave Calhoun said the order showed the huge demand for widebody airplanes around the world as tourism continues to rebound, and is the latest in a series of big 787 orders.

"It's like the biggest I've ever seen," Calhoun said of 787 demand. "The world wants to connect in this post-COVID moment."

Calhoun said the planemaker was standing by its 787 production guidance announced in November, which calls for Boeing to ramp up to 10 787s by the 2025-2026 timeframe.

All customers, "specifically Riyadh Air, are all built into that schedule", Calhoun said. "We have a lot of confidence that we can meet it and that was an important part of this deal."

The Federal Aviation Administration on Friday approved Boeing's plan to resume deliveries of the 787. Boeing shares were up 3.6% in early trading.

The company's clean sweep of the lucrative widebody order is a blow for European rival Airbus (AIR.PA) which as recently as late last year had been expected to secure at least part of the deal. Saudia currently operates both Airbus and Boeing jets.

Richard Aboulafia, an aerospace analyst at AeroDynamic Advisories, said Boeing’s success in capturing the entire order could partially be due to "a greater U.S. presence in the region -- politically, diplomatically, economically".

He added however that "it's also quite likely that the 787 is just closer to their requirements right now".

In particular, the 787 allows for a more flexible route network, as it’s smaller than the A350 but with equivalent range. "That’s probably a big factor in it," Aboulafia said.

Saudi Arabia's Crown Prince Mohammed bin Salman announced on Sunday the creation of new national airline Riyadh Air, with industry veteran Tony Douglas as its chief executive, as the kingdom moves to compete with regional travel hubs.

"We've got a blank sheet of paper," Douglas told Reuters on Tuesday.

Riyadh Air is wholly owned by Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), which has more than $600 billion in assets and is the main driver of the kingdom's efforts to wean itself off oil.

The airline will serve more than 100 destinations around the world by 2030 and will directly compete against Emirates and Qatar Airways.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×