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Riyadh Air is emerging as a new force in global aviation, with CEO Tony Douglas signaling that the airline is prepared to acquire Boeing (NYSE:BA) aircraft originally intended for Chinese airlines if trade tensions prevent deliveries. Boeing recently indicated during an analyst call that it may resell dozens of jets blocked by the escalating U.S.-China trade war, stressing there would be no shortage of buyers amid tight market conditions. Douglas confirmed in an interview that Riyadh Air had made it clear to Boeing that it would be ready to take all available aircraft should they become accessible, aligning with the airline's aggressive fleet expansion strategy ahead of its fourth-quarter launch.
Backed by Saudi Arabia's Public Investment Fund, Riyadh Air has already placed significant orders, including 60 Airbus A321-family jets and up to 72 Boeing 787 Dreamliners. Douglas stated that despite broader global economic uncertainty, the airline has seen no weakening in demand for travel to and from Riyadh. Riyadh Air plans to announce a new order for wide-body aircraft this summer, complementing its current build-out, which includes hiring an initial 500 employees with plans to double the workforce over the next 9 to 12 months as deliveries ramp up.
Douglas also highlighted the strong profitability potential of key regional routes such as Dubai to Riyadh, which ranks among the world's highest revenue-per-kilometer markets. He further noted the reopening of flight paths between the UAE and Syria as a marginal but positive signal for broader Middle East aviation dynamics. As Riyadh Air prepares to enter service, the company's proactive aircraft acquisition strategy and positioning within Saudi Arabia's larger economic diversification efforts could make it a pivotal player in the evolving global airline sector.
This article first appeared on GuruFocus.