Aircraft Orders & Deliveries
Saudia Negotiates Historic 150+ Jet Order with Boeing and Airbus
Saudia is in talks to order over 150 aircraft from Boeing and Airbus to modernize its fleet and support Saudi Arabia’s Vision 2030 aviation goals.
This article summarizes reporting by Reuters, Bloomberg News, and publicly available elements and industry context.
Saudi Arabian Airlines (Saudia) is reportedly in the early stages of negotiating the largest aircraft order in its 80-year history. According to reporting by Bloomberg News and Reuters, the state-owned carrier is in discussions with aerospace giants Boeing and Airbus to acquire at least 150 narrowbody and widebody aircraft. This potential acquisition marks a significant escalation in the Kingdom’s aviation strategy under Vision 2030.
If finalized, this deal would surpass Saudia’s substantial fleet investments made in 2023 and 2024, further cementing the airline’s role in Saudi Arabia’s aggressive tourism and connectivity goals. The negotiations reportedly involve a mix of aircraft types designed to replace aging models and drastically expand capacity to meet government targets of 330 million annual passengers by the end of the decade.
Industry reports indicate that the airline is looking to secure a minimum of 150 jets, though specific models and the final split between manufacturers remain under discussion. The order is expected to address two primary operational needs: replacing older, less efficient airframes and facilitating rapid network expansion.
According to the reports, Saudia is evaluating both single-aisle (narrowbody) jets for domestic and regional routes, and twin-aisle (widebody) jets for long-haul international service. Likely candidates for retirement include the carrier’s older Airbus A320ceo models and Boeing 777-200ERs, which lack the fuel efficiency of modern alternatives like the A320neo family or the Boeing 787 Dreamliner.
This move follows a pattern of aggressive fleet renewal. In 2023, Saudia placed a significant order for 39 Boeing 787 Dreamliners, followed by a 2024 agreement for 105 Airbus A320neo family aircraft. The scale of this new potential order, exceeding 150 units, suggests a shift from incremental updates to a massive capacity surge.
Negotiations are reportedly ongoing with both Boeing and Airbus. Industry analysts suggest the order could be split between the two or awarded based on critical factors such as delivery slot availability and pricing.
“Saudia is positioning itself to secure not just the best price, but crucially, the earliest possible delivery slots.” Airbus currently dominates the narrowbody market but faces production backlogs stretching into the 2030s. Conversely, Boeing, while recovering from production and certification delays involving the 737 MAX and 777X, may have more incentive to offer aggressive pricing to stabilize its order book. The driving force behind this massive capital expenditure is Saudi Arabia’s “Vision 2030” initiative, which aims to transform the Kingdom into a global aviation hub and a premier tourism destination. The government has set a target of attracting 150 million tourists annually by 2030.
Saudi Arabia is pursuing a unique “dual-hub” aviation strategy. While the newly launched, Public Investment Fund-backed carrier Riyadh Air focuses on premium international business and leisure traffic from the capital, Saudia is repositioning its operations in Jeddah.
Saudia’s primary mandate under this strategy involves:
By negotiating for 150+ aircraft simultaneously, Saudia is exercising immense leverage in a supply-constrained market. We believe this strategy is less about brand loyalty and more about securing the “queue jumping” privileges necessary to meet 2030 deadlines. With Airbus production lines heavily booked, Saudia may be forced to lean on Boeing for widebody capacity if they require delivery before 2029, despite Boeing’s recent certification challenges.
Furthermore, this order highlights the distinct separation of roles between Saudia and Riyadh Air. Rather than shrinking in the shadow of the new national carrier, Saudia is aggressively defending its market share in the religious and regional sectors, ensuring that the “old guard” remains a central pillar of the Kingdom’s infrastructure.
What is the estimated value of the deal? When will the order be finalized? How does this affect Riyadh Air? Sources: Reuters/Bloomberg
Saudia Negotiates Historic 150+ Jet Order with Boeing and Airbus
Details of the Potential Order
Fleet Modernization and Expansion
Manufacturer Competition
, Industry Analysis via Research Report
Strategic Context: Vision 2030
The Dual-Hub Strategy
AirPro News Analysis
The Leverage of Scale
Frequently Asked Questions
While financial terms are private, a mixed order of 150 narrowbody and widebody jets could be valued between $15 billion and $25 billion at list prices, though airlines typically negotiate significant discounts of 40% to 50%.
Talks are currently described as preliminary. No final decision on specific models or quantities has been announced, and the timeline for a signed agreement remains open.
This order is specific to Saudia (based in Jeddah). Riyadh Air is a separate entity with its own fleet strategy, though both airlines are owned by the Saudi government and coordinate to cover different market segments.
Photo Credit: Saudia Airlines