Airlines Strategy
Riyadh Air and Avilease Launch Strategic Boeing 787 Lease Deal
Riyadh Air leases a Boeing 787-9 from Avilease as part of Saudi Arabia’s Vision 2030 to expand its aviation sector and global connectivity.
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.
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.
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.
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.
Question: What is the significance of the Riyadh Air and Avilease agreement? Question: What aircraft is involved in the lease? Question: What are Riyadh Air’s long-term fleet plans? Question: What is the goal of the Saudi Aviation Strategy?
Riyadh Air and Avilease: A Strategic Alliance Takes Flight
The Deal Deconstructed: More Than Just an Aircraft
Vision 2030: The Blueprint for a Global Aviation Hub
Conclusion: A Calculated Ascent
FAQ
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.
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.
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.
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
Photo Credit: Riyadh Air
Airlines Strategy
Singapore Airlines and Malaysia Airlines Formalize Joint Business Partnership
Singapore Airlines and Malaysia Airlines formalize a strategic partnership to coordinate flights, share revenue, and expand codeshares on the Singapore-Malaysia corridor.
This article is based on an official press release from Singapore Airlines.
On January 29, 2026, Singapore Airlines (SIA) and Malaysia Airlines Berhad (MAB) officially formalized a strategic Joint Business Partnerships (JBP). The agreement marks a significant milestone in Southeast Asian Airlines, following the receipt of final Regulations approvals from the Civil Aviation Authority of Malaysia (CAAM) earlier this month and the Competition and Consumer Commission of Singapore (CCCS) in July 2025.
According to the joint announcement, the partnership allows the two national carriers to coordinate flight schedules, share revenue, and offer joint fare products. This move is designed to deepen cooperation on the high-traffic Singapore-Malaysia air corridor and expand connectivity for passengers traveling between the two nations and beyond.
The formalized agreement enables SIA and MAB to operate more closely than ever before. Key components of the partnership include revenue sharing on flights between Singapore and Malaysia and the alignment of flight schedules to provide customers with more convenient departure times. The airlines also plan to introduce joint corporate travel programs to better serve business clients operating in both markets.
A central feature of the JBP is the expansion of codeshare arrangements. Under the new terms, Singapore Airlines will expand its codeshare operations to include 16 domestic destinations within Malaysia, such as Kota Kinabalu, Kuching, Penang, and Langkawi. Conversely, Malaysia Airlines will progressively codeshare on SIA flights to key international markets, including Europe and South Africa.
Goh Choon Phong, Chief Executive Officer of Singapore Airlines, emphasized the mutual benefits of the agreement in a statement:
“Our win-win collaboration strengthens both carriers’ operations, while delivering enhanced value to customers across our combined networks. This also reinforces the long-standing and deep people-to-people and trade links between Singapore and Malaysia, supporting economic growth and connectivity that will benefit both nations.”
The path to this partnership began in October 2019 but faced delays due to the global pandemic and necessary regulatory scrutiny. The Competition and Consumer Commission of Singapore (CCCS) conducted a thorough review, raising initial concerns regarding competition on the Singapore-Kuala Lumpur (SIN-KUL) route, one of the busiest international air corridors globally.
To secure approval, the airlines committed to maintaining pre-pandemic capacity levels on the route. Additionally, the partnership explicitly excludes the groups’ low-cost subsidiaries, Scoot (SIA Group) and Firefly (Malaysia Aviation Group). This exclusion was a critical revision submitted to regulators to ensure fair competition in the budget travel segment. Datuk Captain Izham Ismail, Group Managing Director of Malaysia Aviation Group, highlighted the strategic importance of the deal:
“This collaboration brings together complementary frequencies and aligned schedules, enabling deeper connectivity between Malaysia and Singapore. Over time, it reinforces MAB’s competitive position by enhancing scale, relevance, and network resilience across key markets.”
Consolidation in a High-Volume Corridor
The formalization of this JBP effectively allows Singapore Airlines and Malaysia Airlines to operate as a single entity regarding scheduling and pricing on the full-service Singapore-Kuala Lumpur route. By coordinating schedules, the carriers can avoid wingtip-to-wingtip flying (flights departing at the exact same time), thereby optimizing fleet utilization and offering a “shuttle-like” frequency for business travelers.
While this strengthens the full-service proposition against low-cost competitors like AirAsia, the regulatory exclusion of Scoot and Firefly is a vital safeguard for consumers. It ensures that price-sensitive travelers retain access to competitive fares driven by the budget sector, while the JBP focuses on premium and connecting traffic.
When does the partnership officially begin? Will this affect frequent flyer programs? Are budget airlines included in this deal?
Singapore Airlines and Malaysia Airlines Formalize Strategic Joint Business Partnership
Scope of the Partnership
Expanded Connectivity and Codeshares
Regulatory Journey and Exclusions
AirPro News Analysis
Frequently Asked Questions
The partnership was formally launched on January 29, 2026, following the final regulatory approval from the Civil Aviation Authority of Malaysia.
Yes. While reciprocal benefits for earning and redeeming miles were enhanced in 2024, the JBP is expected to deepen integration, offering better recognition for elite status holders and improved lounge access across both networks.
No. The low-cost subsidiaries Scoot and Firefly are excluded from this joint business arrangement to comply with regulatory requirements and preserve competition.
Sources
Photo Credit: Montage
Airlines Strategy
Qantas to Exit Jetstar Japan Stake and Rebrand by 2027
Qantas will sell its 33.32% stake in Jetstar Japan to a consortium led by the Development Bank of Japan, ending its Asian LCC venture by mid-2027.
This article summarizes reporting by Reuters.
The Qantas Group has announced it will divest its remaining 33.32% shareholding in Jetstar Japan, selling the stake to a consortium led by the Development Bank of Japan (DBJ). The move, confirmed on February 3, 2026, signals the Australian carrier’s complete departure from the Asian low-cost carrier (LCC) joint venture model.
According to reporting by Reuters, the transaction is expected to conclude by mid-2027, subject to regulatory approvals. While the Airlines will continue operations, it will undergo a comprehensive rebranding, removing the “Jetstar” name from the Japanese domestic market. This decision follows the closure of Qantas’s Singapore-based subsidiary, Jetstar Asia, in July 2025, effectively ending the group’s pan-Asian budget airline strategy.
Under the new agreement, the Development Bank of Japan will enter as a major shareholder, while Japan Airlines (JAL) will retain its controlling 50% stake. Tokyo Century Corporation will also hold its position with a 16.7% share.
Qantas has stated that the financial impact of the sale will be immaterial to its earnings. The primary objective appears to be a strategic realignment rather than an immediate cash injection. The airline’s current flight schedules, routes, and staffing at its Narita Airport base will remain unaffected in the immediate term.
Consumers can expect significant changes to the airline’s visual identity. According to market data, a new brand name is expected to be announced in October 2026, with the full transition away from the Jetstar livery completed by mid-2027. Until then, the carrier will continue to operate under its current name.
The divestment allows Qantas to redirect capital toward its core domestic operations and its ambitious “Project Sunrise” ultra-long-haul international flights. In an official statement regarding the sale, Qantas Group CEO Vanessa Hudson emphasized the shift in focus.
“We’re incredibly proud of the pioneering role Jetstar Japan has played… This transaction allows us to focus our capital on our core Australian operations while leaving the airline in strong local hands.”
Vanessa Hudson, Qantas Group CEO
For Japan Airlines and the DBJ, the move represents a “nationalization” of the carrier’s ownership structure. By transitioning to a Japanese capital-led model, the stakeholders aim to better capture the country’s booming inbound tourism market without the complexities of a cross-border joint venture.
“We will respond flexibly to market changes and maximize synergies with the JAL Group to achieve sustainable growth.”
Mitsuko Tottori, JAL Group CEO
The exit from Jetstar Japan marks the final chapter in Qantas’s retreat from its once-ambitious Asian expansion strategy. For over a decade, the “Jetstar” brand attempted to replicate its Australian success across Asia. However, the closure of Jetstar Asia in Singapore in 2025 demonstrated the difficulties of maintaining margins in a fragmented market saturated by competitors like Scoot and AirAsia.
By selling its stake in Jetstar Japan now, Qantas appears to be executing a disciplined retreat. Rather than continuing to battle high fuel costs and intense regional competition from rivals such as ANA’s Peach Aviation, the Australian group is consolidating its resources where it holds the strongest competitive advantage: its home market and direct international connections.
Despite the ownership change, operational ties between the carriers will not be entirely severed. Qantas and Japan Airlines will maintain their codeshare relationship, and Qantas and Jetstar Airways (Australia) will continue to operate their own aircraft between Australia and Japan. The sale strictly concerns the Japanese domestic joint venture entity.
Masakazu Tanaka, CEO of Jetstar Japan, expressed optimism about the transition in a statement:
“As we look to the next chapter… I am pleased to work with the new ownership group to lead our LCC into the future.”
Masakazu Tanaka, Jetstar Japan CEO
The airline will continue to compete in the Japanese LCC sector, which is currently seeing consolidation as major groups like JAL and ANA tighten control over their budget subsidiaries.
Qantas to Exit Jetstar Japan Stake; Airline Set for Rebrand
Transaction Details and Ownership Structure
Rebranding Timeline
Strategic Rationale
AirPro News Analysis
Future Operations
Sources
Photo Credit: Montage
Airlines Strategy
ANA Holdings FY2026-2028 Strategy Targets Narita Expansion
ANA Holdings plans 2.7 trillion yen investment focusing on Narita Airport expansion, fleet growth, and cargo integration through 2028.
This article is based on an official press release from ANA Holdings.
On January 30, 2026, ANA Holdings (ANAHD) announced its new Medium-term Corporate Strategy for fiscal years 2026 through 2028. Under the theme “Soaring to New Heights towards 2030,” the group has outlined a roadmap shifting from post-pandemic recovery to a phase of aggressive growth, underpinned by a record 2.7 trillion yen investment plan over the next five years.
The strategy identifies the planned expansion of Narita International Airport in 2029 as a critical business opportunity. According to the company, this infrastructure upgrade will serve as a catalyst for expanding its global footprint. Financially, the group is targeting record-breaking performance, aiming for 250 billion yen in operating income by FY2028 and 310 billion yen by FY2030.
A central pillar of the new strategy is the preparation for the massive infrastructure upgrade at Narita International Airport, scheduled for completion in March 2029. This expansion includes the construction of a new third runway (Runway C) and the extension of Runway B, which is expected to increase the airport’s annual slot capacity from 300,000 to 500,000 movements.
ANAHD views this development as a “once-in-a-generation” opportunity. The group’s network strategy is divided into two distinct phases:
To support this expansion, ANAHD plans to introduce new Boeing 787-9 aircraft starting in August 2026. These aircraft will feature upgraded seats in all classes, a move designed to enhance the airline’s premium appeal in the competitive international market. The total fleet is expected to expand to approximately 330 aircraft, exceeding pre-COVID levels.
Following the acquisition of Nippon Cargo Airlines (NCA) in August 2025, ANAHD is positioning itself as a “combination carrier” powerhouse. The strategy outlines a goal to integrate ANA’s passenger belly-hold capacity with NCA’s large freighter fleet, which includes Boeing 747-8Fs.
“The group aims to realize 30 billion yen in synergies, positioning the group as a global logistics powerhouse.”
, ANA Holdings Press Release
By combining these assets, the group intends to expand its Cargo-Aircraft scale (Available Ton-Kilometers) by 1.3 times, targeting leadership in the Asia-North America and Asia-Europe trade lanes. The group’s low-cost carrier, Peach, is also targeted for 1.3x growth in scale. The strategy emphasizes capturing inbound tourism demand through Kansai International Airport and expanding international medium-haul routes.
The financial roadmap set forth by ANAHD is ambitious. The group aims to achieve an operating margin of 9% by FY2028 and 10% by FY2030. To achieve these figures, the company has committed to a 2.7 trillion yen investment over five years, with 50% allocated to international passenger and cargo growth.
AI is another significant investment area, with 270 billion yen allocated to digital initiatives. The group aims to increase value-added productivity by 30% by FY2030 compared to pre-COVID levels. This includes a focus on “Empowerment of All Employees,” training staff as digital talent to combat Japan’s shrinking workforce.
The strategic distinction between ANA and its primary domestic competitor, Japan Airlines (JAL), is becoming increasingly defined by hub strategy and cargo volume. While both carriers are modernizing fleets and targeting North American traffic, ANA’s explicit “dual-hub” timeline, banking heavily on the 2029 Narita expansion, suggests a long-term volume play that complements its high-yield Haneda operations.
Furthermore, the integration of NCA provides ANA with a diversified revenue stream that acts as a hedge against passenger market volatility. By securing dedicated freighter capacity via NCA, ANA is less reliant on passenger belly space than competitors who lack a dedicated heavy-freighter subsidiary, potentially giving them an edge in the logistics sector.
In response to market demands for capital efficiency, ANAHD has signaled a commitment to Total Shareholder Return (TSR). The policy includes maintaining a dividend payout ratio of approximately 20% and introducing a new interim dividend system starting next fiscal year. The group also noted it would execute flexible share buybacks.
On the Sustainability front, the group reiterated its goal of Net-Zero CO2 emissions by 2050, focusing on operational improvements and the accelerated adoption of SAF.
ANA Holdings Unveils Aggressive FY2026-2028 Strategy Targeting Narita Expansion
Strategic Pivot: The “2029 Catalyst”
Fleet and Product Upgrades
Cargo and LCC Integration
Peach Aviation Growth
Financial Targets and Digital Transformation
AirPro News Analysis
Shareholder Returns and Sustainability
Frequently Asked Questions
Sources
Photo Credit: Luxury Travel
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