logo

Saudi firms to place orders for dozens of Airbus jets, sources say

Zawya2 days ago

NEW DELHI - Saudi Arabia is set to place orders for billions of dollars of Airbus jets as the kingdom balances suppliers in its quest to match the aviation growth of Gulf neighbours, industry sources said.
Leasing company AviLease, which placed an order for 30 Boeing 737 MAX jets during a visit to the region this month by U.S. President Donald Trump, could place a comparable order for Airbus A320neo jets at next month's Paris Airshow, they said.
The fast-growing company, which aims to be one of the world's top lessors, is also potentially interested in Airbus A350 freighters, they added.
Barring a problem in negotiations, startup airline Riyadh Air appears poised to select the Airbus A350 over Boeing's delayed 777X, they said.
The possible Riyadh Air A350 deal, which Bloomberg earlier reported could involve 50 jets, would also be announced at one of this year's trade shows.
Airbus declined comment. AviLease was not immediately available.
Riyadh Air reiterated it was studying an order for large wide-body planes. 'A decision will be made in the coming months,' a spokesperson added.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Air taxis in Saudi Arabia: Abdul Latif Jameel and Joby Aviation sign $1bn future transport deal
Air taxis in Saudi Arabia: Abdul Latif Jameel and Joby Aviation sign $1bn future transport deal

Arabian Business

timean hour ago

  • Arabian Business

Air taxis in Saudi Arabia: Abdul Latif Jameel and Joby Aviation sign $1bn future transport deal

A business group in Saudi Arabia will partner with a futuristic US aviation firm on a $1bn deal to bring flying taxis to the Kingdom. The groundbreaking electric aircraft partnership will see Abdul Latif Jameel team up with Joby Aviation to explore a distribution agreement for electric vertical take-off and landing (eVTOL) aircraft. The potential deal, valued at approximately $1bn, could deliver up to 200 aircraft in the coming years, marking a pivotal step in Saudi Arabia's clean transportation ambitions. Flying taxis in Saudi Arabia The announcement builds on the deepening economic ties between the United States and Saudi Arabia, with both nations investing heavily in next-generation, sustainable infrastructure. Joby Aviation, known for its piloted, all-electric aircraft designed to carry four passengers at speeds of up to 200 mph, represents the forefront of urban air mobility. With zero operating emissions and significantly reduced noise levels, Joby's aircraft are poised to redefine short-distance travel. JoeBen Bevirt, Founder and CEO of Joby Aviation, said: 'This collaboration is about bringing America's leadership in electric air mobility to the world. Together with Abdul Latif Jameel, we're not just imagining a cleaner, safer, more efficient future—we're building it. And there is no better partner to help unlock the extraordinary opportunity for air travel in the region.' Hassan Jameel, Vice Chairman, Saudi Arabia, Abdul Latif Jameel, said: 'Saudi Arabia is transitioning toward a new era of mobility – one that is on-demand, shared, connected, and sustainable. eVTOL is an exciting and important component of this. 'We are looking forward to collaborating with Joby to support the transformation of the Kingdom's mobility sector. This collaboration also comes as Abdul Latif Jameel Motors marks 70 years of distributing Toyota in Saudi Arabia — a strategic investor in Joby.' Joby's collaboration with Abdul Latif Jameel will initially focus on Saudi Arabia, where Abdul Latif Jameel has an extensive presence, network and deep operational experience. The two businesses will work together to explore distribution and sales collaborations, the launch of local air taxi services, including the establishment of aftermarket services such as MRO (Maintenance, Repair, and Overhaul), and pilot training. Joby's piloted, all-electric aircraft is designed to carry four passengers at speeds of up to 200mph, offering high-speed mobility with a fraction of the noise produced by helicopters and zero operating emissions. Joby Aviation aims to launch its first commercial passenger flights in Dubai by 2026, with expansion into Saudi Arabia envisioned soon after. The deal also reflects Abdul Latif Jameel's broader investment strategy in future mobility. The Jameel family previously invested in Joby's Series C funding round, led by Toyota Motor Corporation in 2020.

Saudi Arabia, UAE lead office quality fit-out investments
Saudi Arabia, UAE lead office quality fit-out investments

Zawya

time6 hours ago

  • Zawya

Saudi Arabia, UAE lead office quality fit-out investments

The corporate sentiment in the Middle East and Africa (MEA) is geared towards targeted investments in overall space design and fit-outs to support return-to-office strategies, according to leading real estate expert JLL. This has accelerated demand for high-quality Grade A office spaces and fit-outs that enhance workplace experience and performance. In its latest 'EMEA Office Fit-Out Cost Guide 2025', JLL has identified Saudi Arabia and the UAE among the top countries globally with a high proportion of cost for high quality finishes, averaging more than $2,400/sqm, against the global average of $1,830/sqm, as workplace design becomes a component part of talent attraction and retention. The JLL EMEA Office Fit-Out Cost Guide 2025, which analyses data from 25 countries to provide insights into cost variations, drivers, sustainability concerns, and market sentiment, has also outlined the complex cost pressures for the EMEA construction sector in 2025, with office fit-out costs increasing in the last 12 months. The steady rise in costs reflects the growing trend of organisations (44%) in the region to increase office-based workdays over the next five years. Dubai also ranks among the top 20 cities globally in the City Cost Index, reflecting continued competition for Grade A spaces, while in Saudi Arabia, initiatives such as regional headquarters (RHQ) programme is also driving demand. JLL has also found that sustainability is a key driver in many relocation strategies and office fit-outs, with 68% of organisations globally planning to increase investment in sustainability performance in the next five years. In MEA, the sentiment is strongest in Saudi Arabia and the UAE, where 78% of corporate real estate leaders aim to enhance value through sustainability. Maroun Deeb, Head of Project & Development Services, Saudi Arabia and Bahrain at JLL, said: "The general optimism towards investing in workspaces is likely to continue throughout 2025 as growth-oriented corporations invest in office fit-outs to support their hybrid workplace policies." "Targeted investments to enhance employee experience will see an increased focus on workplace design, innovative technology solutions, and refurbishment opportunities amid growing interest in healthier, energy-efficient workspaces," he stated. Several factors are contributing to the current market dynamics. Supply chain disruptions in 2024 disproportionately affected the Middle East and North Africa, tightening project timeframes and escalating pricing. According to JLL, builders' works, which includes partitions, flooring, finishes, and joinery, typically accounts for the largest component of fit-out costs, ranging from 26% in Cairo and 36% in the UAE to 40% in Saudi Arabia. These costs are among the most susceptible to raw material prices and supply chain risks, it stated. Mechanical & Electrical (M&E) services now account for a higher proportion of office spend as stricter environmental and sustainability standards require more complex systems. Cairo (39%) ranks among the top cities globally for average proportion of costs per sqm for M&E services, while Dubai (30%) and Riyadh (29%) are on par with the global average cost of 29%. Technology integration is also pivotal to enhancing hybrid work environments across all office typologies, with companies in MEA investing in improved and extended AV systems. Gary Tracey, the Head of Project & Development Services UAE at JLL, said: "The demand for high-performance office spaces is intensifying in the UAE as stakeholders increasingly prioritise environmental considerations to drive asset value." "Offices that embrace innovative technologies and sustainable design principles and have higher levels of green certification command a premium, especially in Dubai. Investments to improve sustainability will mitigate future operational expenses, remaining highly attractive to tenants seeking modern, efficient workplaces," he added. JLL said the momentum for sustainable workplaces continues to surge in the region, driven by corporate commitments, evolving expectations, and stricter regulatory requirements. Companies are weighing the cost-benefits of relocation to newer Grade A buildings compared to upgrading existing assets. However, organisations in the region face challenges in meeting sustainability requirements due to limited suitable stock and high costs of upgrading older buildings. To address these challenges, early planning and integration of sustainability targets in relocation strategies and fit-out projects are crucial, it stated. Ahmed Hemmat, Head of Project & Development Services at JLL in Egypt, said: "In a climate of economic uncertainty, organisations that build flexibility and agility into planning will be better positioned to adapt their work settings to evolving workforce needs." "This also supports leasing decisions, as flex spaces optimise costs for landlords and occupiers and create a more engaging and productive work environment to support the needs of today's hybrid work model," he added. Despite the complex landscape of challenges and opportunities, office construction will remain active in the region. To ensure the success of fit-out initiatives, JLL recommends the need for greater collaboration and effective partnerships. From environmental and smart building systems to adaptive workspaces and settings, supply chain engagement is critical in managing costs and allowing for innovation in future-focused workspaces. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (

Modi's soaring Indian aviation ambitions face many headwinds
Modi's soaring Indian aviation ambitions face many headwinds

Zawya

time6 hours ago

  • Zawya

Modi's soaring Indian aviation ambitions face many headwinds

Prime Minister Narendra Modi's high-profile attendance at a global airlines conference this week underscores how much India is banking on a boom in aviation to support wider development goals, but headwinds to its ambitions are gathering force. Undeterred by the uncertainty gripping the aviation sector globally due to trade tensions and shaky consumer confidence, India's biggest airlines are ploughing ahead with orders for new planes, following record deals two years ago. However, the rapid pace of growth risks losing steam if plane shortages, infrastructure challenges and taxation issues are not addressed, industry officials warned at the International Air Transport Association's annual meeting. Hostilities with neighbour Pakistan are also causing Indian airlines to take large, expensive detours around Pakistani airspace, requiring more fuel and passenger care. Carriers have asked the Indian government to waive some fees and provide tax exemptions, people familiar with the matter have told Reuters, but it is not clear if it will provide any help, despite its high-flying rhetoric. New Delhi says it wants India to be a job-creating global aviation hub along the lines of Dubai, which currently handles much of India's international traffic. "In the coming years, the aviation sector is expected to be at the centre of massive transformation and innovation, and India is ready to embrace these possibilities," Modi told global aviation leaders on Monday. But the transformation will require billions of dollars of investment in airports and industry supply chains, and a revamp of regulations, industry officials said. PUNCHING BELOW ITS WEIGHT The numbers look promising. IATA forecasts passenger traffic in India will triple over the next 20 years and the country has set a target of increasing the number of airports to as many as 400 by 2047, up from 157 in 2024. "We are fast emerging as a strategic connector country ... India is a natural connector of the skies and aviation as well," India's Civil Aviation minister Ram Mohan Naidu told global airline CEOs in New Delhi. Already the world's third-largest aviation market by seats after the U.S. and China, there is significant potential for India to grow. The world's most populous nation, India accounts for around 17.8% of people but only 4.2% of global air passengers, according to IATA. A record 174 million Indian domestic and international passengers flew in 2024, compared to 730 million in China, IATA data shows. "The outlook is potentially a very positive one for both the Indian economy and air transport industry. However, such outcomes are not guaranteed," IATA said in a report on the Indian market. Industry executives and analysts said more work lies ahead in scaling aviation-related infrastructure, updating rules, lowering taxes and making life easier for airlines. "Even the regulators will agree that they need to update their regulation, because there is a reason why India is not punching above its weight. In fact, it is punching very much below its weight," Association of Asia Pacific Airlines Director General Subhas Menon said. Dubai-based Emirates, for example, says capacity restrictions on foreign airlines need to be relaxed for the industry to reach its full growth potential. "For every seat we offer, particularly in the peaks, we've got three to 10 people trying to get it," Emirates President Tim Clark told reporters. Among other problems, India lacks enough domestic maintenance, repair and overhaul facilities to care for its fleet, making it overly dependent on foreign shops at a time of stiff competition for repair slots, particularly for engines. Global airlines have aircraft sitting on the ground because there aren't enough facilities available for servicing them, IATA Director General Willie Walsh said. "I think airframe maintenance is a huge opportunity for India because you require labour and you require skills. And that's something that I know India is investing in," Walsh said, in response to a Reuters question at a press conference. Airline growth globally is being tempered by extended delays to deliveries of new, more fuel-efficient planes due to supply chain issues. India's largest airline IndiGo has been leasing aircraft to allow it to expand internationally while it waits for new planes. This week it partnered with Air France-KLM , Virgin Atlantic and Delta to extend the reach of IndiGo tickets using those airlines' networks. (Reporting by Abhijith Ganapavaram and Nandan Mandayam in New Delhi, additional reporting by Shivansh Tiwary; Writing by Lisa Barrington; Editing by Jamie Freed and Mark Potter)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store