RIYADH: Saudi Arabia’s Public Investment Fund is in discussions to acquire Boeing and Airbus freighters as part of a plan to establish a new cargo airline, according to Bloomberg.
The move comes in response to growing demand for precision navigation in the Kingdom’s logistics sector, a highly competitive market with elevated consumer service expectations, as the nation positions itself as a regional leader in the industry.
The proposed freight airline would support Saudia, the Kingdom’s national carrier, and the newly launched Riyadh Air, Bloomberg reported, citing anonymous sources familiar with the matter.
PIF is said to be in early-stage talks with Boeing Co. and Airbus SE, as well as aircraft leasing firms, regarding the potential acquisition of Boeing 777 and Airbus A350 freighters. However, final decisions have yet to be made, and the plans could still be delayed or abandoned, the news agency said.
The initiative reflects Saudi Arabia’s broader goal to diversify its economy beyond oil, focusing on sectors such as tourism, aviation, and logistics.
The Kingdom aims to capitalize on its strategic location at the crossroads of Europe, Asia, and Africa, particularly amid growing global demand for air cargo.
According to the International Air Transport Association, air cargo shipments saw a 14 percent increase in June compared to the previous year, marking the seventh consecutive month of double-digit growth.
The nation’s ambitions include the establishment of a new aircraft leasing company, a helicopter service, and investments in Saudia’s engineering unit. Additionally, the Kingdom plans to develop one of the world’s largest airports in Riyadh.
Riyadh Air, launched by PIF, is aiming to expand Saudi Arabia’s connections worldwide. Earlier in June, the airline entered into partnerships with Singapore Airlines and Air China to enhance its global network.
These agreements aim to boost interline connectivity, establish codeshare arrangements, and explore collaboration in areas such as frequent flyer programs, cargo services, customer experience, and digital innovation.
Saudia’s current cargo operation would be included in the new venture, Bloomberg reported, citing people familiar with the matter.
In a related development last year, Saudia and Riyadh Air placed a joint order for 78 Boeing 787 Dreamliners, a deal valued at nearly $37 billion.
Bloomberg News has also reported that ownership of Saudia could be transferred to PIF as early as 2025.
