Boeing has delivered the first two 787-9 Dreamliners to Riyadh Air, the new Saudi Arabian flag carrier, marking a significant step in the airline’s planned launch later this year. The handover, confirmed by the manufacturer on Tuesday, comes as part of a firm order for 39 Dreamliners placed in 2023. Riyadh Air, which aims to become a major long-haul player, will use the aircraft to connect the Saudi capital with destinations across Asia, Europe, and Africa.
The deliveries are a boost for Boeing’s 787 programme, which has been under scrutiny after repeated production snags and supply-chain disruptions. The US aerospace giant has been working to stabilise output at its North Charleston facility in South Carolina. For Riyadh Air, the arrival of the jets allows it to begin crew training, route certification, and schedule planning ahead of its first commercial flights, expected before the end of the year.
The deal is closely tied to Saudi Arabia’s Vision 2030 economic diversification plan, which seeks to transform the kingdom into a global aviation hub. Riyadh Air, wholly owned by the Public Investment Fund (PIF), is intended to compete with Gulf carriers such as Emirates and Qatar Airways. The airline has also placed an order for up to 90 Airbus A321neo single-aisle jets, reflecting a dual-supplier strategy.
For UK investors, the delivery is a positive signal for Boeing’s recovery and the wider aerospace supply chain, which includes UK-based manufacturers such as Rolls-Royce and GKN Aerospace. Rolls-Royce supplies Trent 1000 engines for the 787, and any uptick in 787 deliveries supports aftermarket servicing revenue. Shares in Rolls-Royce have been under pressure recently amid broader market volatility, but analysts view the Dreamliner ramp-up as a medium-term tailwind.
Industry observers caution that Boeing still faces challenges, including a Federal Aviation Administration (FAA) cap on 787 production rates imposed after quality-control lapses. The company must also navigate ongoing labour shortages and component shortages. Nevertheless, the Riyadh Air handover demonstrates that demand for wide-body aircraft remains robust, particularly from Middle Eastern carriers investing in long-haul fleets.
Source: Boeing press release, Reuters.