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Saudi Arabia Unveils New Airline Amid Jet Talks With Boeing

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Published: Monday, 03 April 2023 17:18

Riyadh Air is trying to use its geographic position to attract fliers

Boeing aircraft under construction at a facility in Everett, Wash.

RIYADH, Saudi Arabia—This oil rich kingdom unveiled a new international airline called Riyadh Air, aiming to compete with a handful of other Middle Eastern carriers that have used their geography to build world-class airlines and attract business travelers and tourists.

Saudi Arabia’s sovereign-wealth fund, the Public Investment Fund, is close to committing to a big order of Boeing Co. BA 0.15%increase; green up pointing triangle jets to underpin the new airline, The Wall Street Journal first reported over the weekend. A deal, which could be announced as early as this week, would be a boon for the aircraft maker and a big bet by Riyadh that it can compete in an already-crowded regional aviation market.

The new airline—and the billions of dollars in jet purchases it will require—comes as Saudi coffers swell on the back of higher crude prices. The windfall has helped Crown Prince Mohammed bin Salman push ahead on some of his most ambitious efforts in trying to diversify the economy away from the booms and busts that come with its prodigious oil industry.

Separately on Sunday, Saudi Arabian Oil Co., known better as Aramco, reported record annual profit of $161 billion for 2022, the largest ever by an energy firm. The bumper earnings reflect a turnaround for the industry—and petrostates such as Saudi Arabia—after the Ukraine war lifted oil prices and upended commodity flows.

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Boeing, Airbus Sell 470 Planes to Air India in Record Deal

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Published: Monday, 27 March 2023 17:16

Carrier is seeking to reinvent itself as a rival to the world’s biggest airlines

Air India’s order marks the largest deal for commercial aircraft in aviation history.

Air India Ltd. ordered 470 jets from Boeing Co. BA 0.15%increase; green up pointing triangle and Airbus EADSY -1.38%decrease; red down pointing triangle SE, marking the largest deal for commercial aircraft in aviation history and coming as airlines scramble for jets to meet surging demand for air travel.

The airline said it has agreed to purchase 250 Airbus jets and 220 Boeing planes, surpassing a deal for 460 planes by American Airlines in 2011. The deal is aimed at providing more planes to supply India, which is expected to be the fastest-growing major aviation market in the world.

The Boeing orders, based on the planes’ list prices, came in at $45.9 billion, including options. Airbus no longer quotes list prices for its jets. Based on analysts’ estimates, the deal’s total value was around $85 billion before discounts. The previous record—a 2013 order for Boeing 777X jets by Emirates Airline—was valued at about $75 billion. Airlines don’t typically pay list price, instead benefiting from large, undisclosed discounts.

The Boeing order was first announced by the White House, with the Airbus deal unveiled by Indian Prime Minister Narendra Modi and French President Emmanuel Macron at a joint press conference. President Biden later discussed the deal with Mr. Modi, according to the White House.

Airbus, buoyed by the Air India deal, is planning to boost production rates of its two biggest models as it tries to capitalize on resurgent demand for long-haul travel, The Wall Street Journal separately reported. Boeing has pushed back planned production increases because of supplier shortages, though it still hopes to raise output this year.

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United Airlines Creates Fund for Sustainable Aviation Fuel

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Published: Monday, 20 March 2023 17:14

The $100 million fund, backed by other big businesses, was accelerated by U.S. climate law

United Airlines has been one of the most aggressive airlines in acting on climate change.

United Airlines Holdings Inc. red down pointing triangle is launching a fund backed by several big-name aerospace and financial companies to invest in startups aiming to produce sustainable aviation fuel, in one of the largest efforts yet to lower emissions from air travel.

Created through United’s venture investing arm, the new fund will start with more than $100 million from the company and partners including Air Canada ; red down pointing triangle, Boeing Co.,  green up pointing triangle JPMorgan Chase & Co., Honeywell International Inc.  red down pointing triangle and General Electric Co., decrease; red down pointing triangle United said Tuesday.

Last year’s climate law spurred United to accelerate the fund, which will be capped at $500 million, the company said.

United, Air Canada and other airlines that participate are expected to sign clean-fuel supply agreements with the startups they back. Companies that invest alongside United could share in the carbon credits tied to the production of that sustainable aviation fuel, the company said.

The new fund will be one of the largest sources of cash in the nascent industry of making low-carbon jet fuel. Its launch highlights the pressure faced by the airline industry to reduce emissions. It is part of a recent move by large companies toward startup investing to develop green-energy technologies.

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Boeing Expected to Sell About 80 Dreamliners in Saudi Airline Deal

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Published: Monday, 13 February 2023 21:09

Aircraft order would add Boeing 787s to new airline Riyadh Air and Saudi Arabia’s existing carrier Saudia

Boeing’s 787 Dreamliners, under construction at a company facility in South Carolina, are popular for their fuel efficiency.

Two Saudi Arabian airlines are nearing a deal to buy a total of about 80 Boeing Co. BA 0.15%increase; green up pointing triangle 787 Dreamliners with options for some 40 more, people familiar with the matter said, another significant order for the American aircraft manufacturer.

Riyadh Air, a new airline launched by the Saudi sovereign-wealth fund over the weekend, is expected to commit to purchasing 39 of the wide-body jets, while existing carrier Saudia is expected to buy the same number of jets, these people said.

The agreement, which is expected to be announced as early as Tuesday, is expected to come with options to buy about 40 additional Dreamliners among the airlines, these people said.

The Wall Street Journal over the weekend reported that the Boeing aircraft order was valued at about $35 billion, according to people familiar with the matter. It couldn’t be immediately determined whether that included the typically steep discounts aircraft makers give their customers, or whether that figure included the jets for Saudia too.

The wide-body jets are popular among the world’s airlines for their fuel efficiency and ability to profitably carry passengers on long-haul international routes. Each carries a list price of about $300 million before typical discounts, according to Boeing’s latest publicly available list prices.

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