Saudi Arabia plans new airline to rival Emirates with $37bn Boeing order

A China Southern Airways Boeing Dreamliner 787 plane — Saudi Arabia is set to acquire close to 80. Picture: PA Archive

Saudi Arabia will buy 78 Boeing Dreamliners, as crown prince Mohammed Bin Salman revitalises the country’s flag carrier and oversees the rise of a new international airline that seeks to rival Emirates and Qatar Airways.

The new airline, called Riyadh Air, will buy 39 787-9 jets, with options for 33 more, while existing state-owned carrier Saudia will purchase 39 787's and have a top-up option for another 10, Boeing said. 

The jets will be fitted with General Electric engines. The White House put the deal value at almost $37bn (€34bn), though big customers typically receive steep discounts.

Riyadh Air, owned by Saudi Arabia’s sovereign wealth fund, will be run by former Etihad Aviation Group boss Tony Douglas. The carrier said it aims to connect more than 100 destinations around the world by 2030. 

The Boeing deal comes after US and Saudi officials worked to repair ties between the two countries, which hit a low last year over oil policy.

 The enterprise is part of the crown prince’s broader campaign to diversify the kingdom’s economy and make it less reliant on oil. Last week, the Saudis agreed to restore diplomatic ties with Iran.

The US administration estimated that the Boeing and GE components of the order mean about 1m US jobs in 44 states across the American supply chain. That would include about 150,000 new manufacturing positions.

Boeing began talking to the Saudis about three years ago, but negotiations intensified in May, according to senior officials in the US administration.

Two White House aides, US energy envoy Amos Hochstein and Brett McGurk, the National Security Council’s coordinator for the Middle East, advocated for the commercial deals, the officials said.

 Bloomberg