Saudi Arabia’s RIA is set to take its first flight in the upcoming months, as the airline’s development continues to progress.
Backed by the Saudi PIF, around $30bn is initially being invested to create a brand new carrier, with long-term ambitions of becoming a major global player. The initial launch phase, however, will see narrow bodied aircraft rolled out for regional travel, operating out of Riyadh.
“We are talking about a brand-new airline that aims to do what Emirates did in a quarter of the timescale. It’s unprecedented in the history of aviation. It’s also why they have yet to appoint a CEO – whoever takes this job will have to deliver the most ambitious targets you can imagine,” sources earlier told Arabian Business.
Last week, it was reported that the kingdom’s Public Investment Fund (PIF) was in talks with Boeing Co. and Airbus SE regarding orders for about 80 jets. According to sources familiar with matter, the order was the first purchases for the new national airline.
PIF is looking to buy about 40 planes and take out purchase options for a similar number, the people told Bloomberg, asking not to be identified discussing confidential negotiations.
The requirement includes single-aisle aircraft and larger wide-body models able to fly long distances, they said.
Spokesmen for PIF and Airbus declined to comment, while Boeing didn’t immediately respond to requests for comment.
Saudi Arabia’s RIA is part of the kingdom’s Vision 2030 goals, which aims to push the country’s economy less dependent on oil.
In October, it was reported that former Etihad chief executive officer Tony Douglas to join the new national carrier.
Following his resignation, at least three more senior Etihad Airways executives were being lined up to join new Saudi airline RIA, Arabian Business understands.
It is understood that “RIA” has been submitted to the PIF as a preferred option, though the final decision is likely to be made by Crown Prince Mohamed Bin Salman.
RIA is the centrepiece of Saudi Arabia’s $100 billion investment in aviation as part of its Vision 2030 plans. A third national carrier, based in NEOM, is also being considered.
RIA will be based out of Riyadh, while SAUDIA will operate from Jeddah.
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