Bloomberg reports that Saudi Arabia’s Public Investment Fund is in talks to build a new cargo airline, which includes the acquisition of Boeing and Airbus freighters.
As the country portrays itself as a regional leader in the industry, the move is a response to the increased need for precision navigation in the Kingdom’s logistics sector, a highly competitive market with elevated expectations for customer service.
Bloomberg claimed that anonymous sources acquainted with the subject stated that the potential freight airline will support both the recently formed Riyadh Air and Saudia, the national carrier of the Kingdom.
PIF is rumored to be in preliminary discussions about acquiring Boeing 777 and Airbus A350 freighters with Boeing Co., Airbus SE, and aircraft leasing companies. The news agency stated that since final decisions are still pending, the plans may yet be postponed or scrapped.
The project is a reflection of Saudi Arabia’s larger objective to diversify its economy away from the oil industry by concentrating on industries like travel, aviation, and logistics.
The Kingdom wants to take use of its advantageous location at the meeting point of Europe, Asia, and Africa, especially in light of the rising need for aviation cargo worldwide.
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