RIYADH, Saudi Arabia: Saudi Arabia’s national airline, Saudia, has ordered more than 100 new Airbus jets as part of the kingdom’s ambitious efforts to attract more tourists.
On May 20, Saudia Group, which includes Saudia and its budget carrier Flyadeal, announced an order for 105 aircraft from Airbus’s A320neo family. This order consists of 12 A320neos and 93 A321neos, increasing Saudia Group’s backlog to 144 Airbus A320neo family planes.
The airline aims to increase flights and seat capacity across its more than 100 destinations to support Saudi Arabia’s goal of drawing over 150 million tourists by 2030.
In February, Airbus reported strong results for its commercial aircraft business and set a target of delivering 800 commercial aircraft in 2024, 67 more than the previous year. This success contrasts with the struggles of its U.S. rival, Boeing. Boeing has faced challenges since two fatal crashes involving its 737 Max jets in 2018 and 2019, which killed 346 people. More recently, a door plug incident on an Alaska Airlines 737 Max 9 in January further impacted the company.
Airbus’s success is partly due to its A321neo, a single-aisle aircraft with 180 to 230 seats. The “neo” designation stands for new engine option, highlighting the highly fuel-efficient engines that reduce one of airlines’ largest costs. Boeing’s attempt to compete with the Max series faced multiple technical issues, affecting its market position.
Despite Boeing’s challenges, Airbus is unlikely to significantly extend its lead in the duopoly because it is already producing planes at maximum capacity and has a backlog of over 8,600 orders to fulfill.