Saudia Considers Bond Sale to Finance Fleet Expansion

Saudia (SV), the state-owned airline of Saudi Arabia, is exploring the possibility of raising capital through a debut bond sale to finance its ambitious aircraft acquisition plans. According to Ibrahim Alomar, Saudia’s Director General, the airline aims to double its current fleet of 147 aircraft by the end of the decade. The funds raised would support Saudia’s growth strategy as part of Saudi Arabia’s Vision 2030 initiative, which envisions a significant boost in tourism.

While the exact size of the capital raise has not been determined, Alomar mentioned that Saudia has sufficient financing to cover its aircraft acquisition payments until mid-2024. The airline already has a substantial order backlog, with seventy aircraft on order from Airbus and Boeing. This includes the recent order for eighteen B787-9s and twenty-one B787-10s, along with sixteen A321-200Ns and fifteen A321-200NXLRs.

Saudia’s expansion aligns with Saudi Arabia’s broader vision to enhance its tourism industry, attracting 100 million visitors annually. The country is investing in upgrading aviation infrastructure and introducing new carriers, such as NEOM Airlines and Riyadh Air.

In addition to traditional aircraft acquisitions, Saudia is exploring next-generation electric vertical takeoff and landing (eVTOL) options. The airline signed a memorandum of understanding with Lilium in 2022 to develop and operate an eVTOL network in Saudi Arabia.

Meanwhile, Saudia recently unveiled a new brand identity, signaling its commitment to digital advancements and the development of new services and products. The airline remains focused on its strategic goals as it navigates the dynamic landscape of the aviation industry.