AIRBUS AND BOEING IN TALKS WITH SAUDI ARABIA FOR A POSSIBLE NEW CARGO CARRIER
Saudi Arabia’s Public Investment Fund (PIF) is reportedly looking at establishing a brand new cargo airline, supported by new orders with both Boeing and Airbus according to a recent report by Bloomberg. The PIF acts as the sovereign wealth fund of Saudi Arabia and was set up in 1971 by the country and is currently overseen by Crown Prince Mohammad bin Salman.
According to the report, the new cargo operation would complement and serve Saudia the flag-carrier, and Riyadh Air the country’s latest airline startup. Bloomberg’s sources also mention the Boeing 777 and Airbus A350 freighter variants to be of primary interest to the PIF, despite discussions being at an “early stage.” The PIF is not only speaking to the manufacturers but also lessors in an attempt to secure a deal of some kind.
After the launch of Riyadh Air it is clear that the Kingdom of Saudi Arabia hopes to compete on a global scale. Saudia Cargo’s current fleet is expected to continue to fly to the holy cities while Riyadh Air will take a more international focus.
The former’s most modern planes are its Boeing 777-200Fs, of which it has four. They have an average age of 9.1 years old and operate worldwide. Destinations include Guangzhou, Hong Kong and Liège for instance. They are each adorned with the Saudia Cargo livery.
The obvious competitors to Saudi Arabia’s new cargo airline would be Emirates and Qatar Airways. Their respective fleets are fairly significant at the moment, especially relative to Saudia Cargo’s current one. Both airlines also have several orders for additional cargo planes, meaning the PIF will need to work hard to really make a dent in their operations and ultimately steal market share in the region.
