Riyadh Air and Avilease Launch Strategic Boeing 787 Lease Deal

Riyadh Air and Avilease: A Strategic Alliance Takes Flight

In the world of aviation, partnerships are the bedrock of expansion and strategy. A significant move is unfolding in Saudi Arabia’s burgeoning aviation sector, where two national champions, Riyadh Air and Avilease, have joined forces. This partnership, centered on the lease of a Boeing 787-9 Dreamliner, is more than a simple transaction; it’s a calculated step in a much larger national strategy. Both entities are backed by Saudi Arabia’s Public Investment Fund (PIF), making this collaboration a clear signal of the Kingdom’s vertically integrated approach to realizing its ambitious Vision 2030 goals.

The agreement marks Riyadh Air’s first aircraft lease deal and strategically positions Avilease as its inaugural leasing partner. This is a foundational move for the new airline as it gears up for its commercial launch in late 2025. By securing modern, fuel-efficient Commercial-Aircraft through leasing, Riyadh Air can accelerate its operational readiness while awaiting the delivery of its substantial direct orders from Boeing and Airbus. This initial lease sets the stage for a dynamic fleet strategy, blending direct ownership with flexible leasing to navigate the complexities of launching a global airline.

This collaboration is a tangible manifestation of the Saudi Aviation Strategy, a multi-billion-dollar initiative designed to transform the Kingdom into a global aviation powerhouse. The goals are ambitious: targeting 330 million passengers annually and connecting the nation to over 250 destinations by 2030. The synergy between a new national carrier and a homegrown global lessor illustrates a self-sufficient ecosystem designed to capture value across the entire aviation supply chain, from financing and leasing to passenger and cargo operations.

The Deal Deconstructed: More Than Just an Aircraft

At its core, the agreement involves one Boeing 787-9 Dreamliner, a technologically advanced and highly fuel-efficient widebody aircraft. The Delivery is slated for the fourth quarter of 2025, a timeline that aligns perfectly with Riyadh Air’s planned launch of commercial operations. This timing is critical, providing the airline with essential capacity right at the outset. For a new airline, the initial phase is crucial for establishing brand presence and operational reliability, and having the right aircraft in place is non-negotiable.

This lease is not an isolated event but part of a broader, calculated strategy. Riyadh Air has already made headlines with massive firm Orders for 124 new aircraft, including 39 Boeing 787-9s, 60 Airbus A321neos, and 25 Airbus A350-1000s. However, aircraft manufacturing has long lead times. Leasing provides the agility needed to bridge the gap, allowing the airline to build its network and scale operations without being solely dependent on manufacturing schedules. The airline’s maiden, non-commercial passenger flight on October 26, 2025, from Riyadh to London, also utilized a leased Boeing 787-9, sourced from Oman Air, further underscoring the importance of leasing in its launch strategy.

For Avilease, this agreement is a landmark achievement. Established in 2022 with PIF backing, its mission is to become a top-10 global aircraft lessor. Securing its national sibling carrier, Riyadh Air, as its first major airline partner is a powerful statement. It validates Avilease’s business model and reinforces its strategic role within the Saudi aviation ecosystem. As of the third quarter of 2025, Avilease’s portfolio already included 192 modern aircraft on lease to 48 airlines across 29 countries, and this deal further cements its growing influence.

“This agreement is an important milestone for AviLease. We are continuing to build our investment-grade leasing platform to compete at the top of the industry, globally. Yet, we are also very clear on our role in helping build-up the Saudi aviation ecosystem.”

– Edward O’Byrne, CEO of AviLease.

Vision 2030: The Blueprint for a Global Aviation Hub

The partnership between Riyadh Air and Avilease cannot be fully understood without the context of Saudi Arabia’s Vision 2030. This national blueprint is a comprehensive plan to diversify the Kingdom’s economy away from its historical reliance on oil. Aviation is a central pillar of this diversification, seen as a critical enabler for tourism, logistics, and business. The Saudi Aviation Strategy is the operational arm of this vision, backed by over $100 billion in public and private investment.

The strategy’s objectives are monumental. Beyond the headline goal of 330 million annual passengers, it aims to increase air cargo capacity to 4.5 million tons and attract 150 million tourists annually by 2030. This requires a massive expansion of infrastructure, including the development of the new King Salman International Airports in Riyadh, and the establishment of a robust, globally competitive aviation ecosystem. Riyadh Air is positioned as the premium national carrier to drive this growth, while Avilease provides the financial and operational flexibility on the asset management side.

By fostering “national champions” like Riyadh Air and Avilease, the PIF is creating a symbiotic relationship that keeps investment and expertise within the Kingdom. This integrated approach aims to de-risk the ambitious venture by ensuring that different components of the aviation value chain support each other. The success of Riyadh Air contributes to the growth of King Salman International Airport, which in turn creates opportunities for Avilease. It’s a self-reinforcing cycle designed to accelerate Saudi Arabia’s ascent as a leader in global aviation.

“We are pleased to complete our first aircraft lease with AviLease as we continue building a young, fuel-efficient fleet ahead of our commercial launch. The Boeing 787 is a highly capable aircraft that will play an important role in delivering a world-class travel experience for our future guests.”

– Adam Boukadida, CFO at Riyadh Air.

Conclusion: A Calculated Ascent

The lease agreement between Riyadh Air and Avilease for a single Boeing 787-9 is a microcosm of a much grander vision. It represents a strategic, deliberate, and well-funded effort to build a world-class aviation ecosystem from the ground up. This inaugural partnership is a foundational stone, demonstrating a commitment to collaboration and vertical integration as Saudi Arabia works to achieve the ambitious goals laid out in its Vision 2030 plan. It highlights a pragmatic approach, using leasing to ensure operational readiness and agility while massive long-term fleet orders are fulfilled.

Looking ahead, this partnership sets a precedent for future collaborations within the Saudi aviation sector. As Riyadh Air expands its network toward its goal of connecting Riyadh to over 100 destinations by 2030, the role of flexible and strategic fleet management will only grow. Avilease is well-positioned to be a key enabler of this growth, not just for Riyadh Air but for airlines globally. The success of this integrated model could well become a case study for other nations looking to rapidly develop their own aviation industries, marking a new chapter in the global aviation landscape.

FAQ

Question: What is the significance of the Riyadh Air and Avilease agreement?
Answer: It is the first aircraft lease agreement for Riyadh Air and marks the beginning of a strategic partnership between two PIF-backed Saudi companies. It’s a key step in building Saudi Arabia’s aviation ecosystem as part of Vision 2030.

Question: What aircraft is involved in the lease?
Answer: The lease is for one Boeing 787-9 Dreamliner, a modern and fuel-efficient widebody aircraft, scheduled for delivery in the fourth quarter of 2025.

Question: What are Riyadh Air’s long-term fleet plans?
Answer: Riyadh Air has firm orders for 124 new aircraft, including 39 Boeing 787-9s, 60 Airbus A321neos, and 25 Airbus A350-1000s, with a long-term vision for a fleet exceeding 200 aircraft.

Question: What is the goal of the Saudi Aviation Strategy?
Answer: The strategy aims to transform Saudi Arabia into a global aviation hub, targeting 330 million passengers, 4.5 million tons of cargo, and connections to over 250 destinations by 2030.

Sources

• Riyadh Air Press Release