Why Airbus’s Huge Deal With Saudi Arabia’s New Airline is a Major Win for the A350
Airbus’s enormous A350-1000 plane has attracted a lot of attention at this week’s Paris Air Show.
The star passenger jet of the flying display, many people stopped in their tracks to watch it twist and turn above Le Bourget Airport, while a Johann Strauss waltz played over the show’s loudspeakers.
But for Airbus, the real victory was Monday’s order from Riyadh Air.
Saudi Arabia’s ambitious new airline ordered 25 A350-1000s, with options for up to 25 more.
The prices weren’t disclosed, but according to Ishka, an aviation data and advisory firm, one of these planes delivered this year would be worth around $172 million. That would make the deal worth over $4 billion, although planemakers typically give discounts for big deals with airlines.
These enormous jets will play a vital role as Riyadh Air seeks to help turn the Saudi capital into a top tourist destination — a key part of the kingdom’s Vision 2030 plan to diversify its economy.
Riyadh Air, set to start flying later this year, is expected to operate a hub-and-spoke route model — connecting destinations around the world via its home base.
This requires owning large-capacity planes for the most popular routes. Emirates operates similarly, hence its big bet on the double-decker Airbus A380.
Riyadh Air kicked off its program with an order for up to 72 Boeing 787 jets, but tapped Airbus for its first narrow-body order of 60 A321neos.
Riyadh Air CEO Tony Douglas previously told Business Insider its extra-wide-body planes would “almost certainly” include a first-class cabin, unlike the 787s.
The A350-1000 can carry up to 410 passengers in a typical three-class layout and has a range of over 9,000 miles.
It competes with Boeing’s 777X, which has a wider fuselage and more modern technologies, but has been hampered by delays.
While Boeing showed the plane at the last Paris Air Show in 2023, it wasn’t displayed at Farnborough last year during the planemaker’s safety crisis, nor this year due to ongoing flight tests.
It was initially supposed to launch in 2020, but has since been postponed until 2026 as it awaits certification.
However, the A350-1000 has also faced some challenges. It has a checkered history with Middle Eastern carriers, primarily due to issues from the hot and sandy climate in the region.
This made headlines at the 2023 Dubai Air Show after Emirates boss Tim Clark slammed the plane’s Rolls-Royce engines. In harsher environments, the engines require more frequent maintenance.
Emirates instead placed a smaller order for the A350-900, which uses a different type of Rolls-Royce engine. Meanwhile, it is Boeing’s biggest customer for the 777X, responsible for nearly half its 551 orders.
Rolls-Royce has invested over $1 billion to improve the durability of its Trent engine family, which its president of civil aerospace referenced in its Riyadh Air announcement.
Qatar Airways has also been unhappy with the A350 in the past, temporarily grounding its fleet.
The type’s launch customer sued Airbus in 2021, alleging that safety was compromised because cracked paint exposed the copper mesh, which protects the plane from lightning strikes.
Airbus said the problem was only cosmetic and filed a countersuit before the dispute was settled in 2023.
Now with a sizable order from Riyadh Air, it’s clear the A350’s reputation is improving with a new lease of life.
