LONDON – Saudi Arabia is set to be one of the Middle Eastern’s most important commercial markets.
One of the largest aviation holdings, SAUDIA Group, which owns the flag carrier of Saudia Arabia, SAUDIA and low-cost giant Flyadeal, has inked a sale and leaseback agreement with AviLease company, which is owned by a Saudi-based owned by Public Investment Fund, which is an in-house firm specializing in aircraft financing and leasing.
This contract will see AviLease delivering 20 Airbus A320neo aircraft to be operated on long-term leases by flyadeal, SAUDIA Group’s low-cost carrier (LCC).
His Excellency Eng. Ibrahim Al-Omar, Director General of SAUDIA, said on the latest commercial deal: “This sale and leaseback agreement with AviLease is an important deal for both companies and an important step towards the realization of the Saudi Aviation Strategy.”
“In the few months since it was launched, AviLease has already established itself as a key enabler of the Kingdom’s aviation sector development.”
“SAUDIA Group is proud to partner with them as we strive to achieve our shared national aviation and sustainable tourism goals.”
Mr. Fahad Al-Saif, AviLease Chairman said: “We are pleased to sign this agreement with SAUDIA Group, owner of the Kingdom’s national carrier.”
“Our partnership further cements AviLease’s strong portfolio within Saudi Arabia by delivering next-generation aircraft solutions to locally based operators from the world’s leading manufacturers.”
“In addition to contributing to the development of the aviation sector in Saudi Arabia, in line with the objectives of the Kingdom’s Vision 2030. “
CEO of AviLease, Edward O’Byrne, said, “AviLease is delighted with this latest development in what has already been a successful opening chapter for our company.”
“We are proud to have SAUDIA Group as a partner, further demonstrating our commitment to the Kingdom and the sector at large. This deal significantly boosts our fast-growing portfolio of cutting-edge, fuel-efficient aircraft on long-term leases with quality airlines.”
The latest round of agreement will elevate the lessor’s profile’s (AviLease) portfolio to 32 aircraft.
The incoming aircraft is slated to join flyadeal’s existing all-Airbus fleet, comprising 20 Airbus A320 aircraft, which operates within Saudi Arabia, and International routes. The Saudi Aviation group is known to have one of the latest, most sustainable, and most efficient aircraft fleets in the world.
Implications for Saudi Arabia
This latest round of agreement for 20 extra A320neos between AviLease and flyadeal hugely supports the growth of the Kingdom’s commitment to becoming a regional leader in air transportation and also in other domains, such as technology and efficiency.
Recently, Saudi Arabia has been opening up to the global community after the pandemic and is in lieu of the strategy for the nation’s aviation commitment.
AviLease is a new Saudi aviation leasing company established by Saudi Arabia’s Public Investment Fund, which will aid the country’s dependency on the aviation industry.
Either way, the exponential growth plans within Saudi Arabian aviation are something to keep a close eye on and will no doubt apply some pressure and sweat onto the likes of Emirates, Etihad Airways, Qatar Airways, and others moving ahead.