Riyadh Air, Saudi Arabia's ambitious new airline, just suffered a big setback
Pete Syme/Business Insider
- Saudi Arabia wants to increase tourism and diversify its economy with the help of Riyadh Air.
- Its launch has been pushed back due to Boeing delivery delays, Bloomberg reported.
- Riyadh Air chose Airbus for its second order after months of speculation.
Riyadh Air has postponed its launch because it won't get enough jets due to Boeing's problems, Bloomberg reported.
The new airline is a pivotal part of Saudi Arabia's drive to attract more tourists.
It wants to compete with the likes of Emirates and Qatar Airways that are also based in the Middle East.
In 2023, Riyadh Air announced it had ordered 39 Boeing 787-9 Dreamliners, with options for 33 more.
The airline had expected to take delivery of eight such aircraft this year, but now expected to get just four, Bloomberg reported.
As a result, Riyadh Air has pushed its planned launch back from early 2025 to the third quarter.
"We have obviously pivoted like everybody else has on a number of occasions to be able to adjust to the latest forecast," CEO Tony Douglas told the outlet.
"I am confident, given the latest forecast, that we'll get deliveries this year," he added. "Is it completely without risk? Obviously no, it's not."
Boeing said in a statement: "We continue to work closely with Riyadh Air on their delivery schedule and look forward to supporting Riyadh's inaugural operations."
Riyadh Air did not immediately respond to a request for comment from Business Insider.
Delivery dips
It is the latest disruption sparked by Boeing's recent woes.
The planemaker delivered 348 aircraft last year — its lowest output since the pandemic — as it grappled with the fallout from an Alaska Airlines 737 Max losing a door plug during a flight.
Regulators capped production of the aircraft, while output was also hit by a seven-week strike in the Seattle area.
The 787 Dreamliner is assembled in South Carolina, but the planemaker has slowed down as overhauls processes to ensure safety and quality.
The delays come as a blow to Saudi Arabia's ambitious plans for Riyadh Air.
It aims to serve at least 100 destinations within five years to bring more tourists to the kingdom and help diversify its oil-dependent economy.
The airline has already announced a partnership with Spanish soccer team Atlético Madrid. It also plans to use AI in its systems, to offer a last-minute fast track through security if a passenger is running late, for example.
Riyadh Air has also ordered some single-aisle aircraft for its short-haul operations.
Shortly before the 2023 Dubai Airshow, reports suggested that Riyadh was set to order as many as 100 Boeing 737 Max jets. However, no deal materialized.
In October 2024, the airline announced an order for 60 Airbus A321neo jets.