Summary
- The PIF wants to establish a new cargo airline with Boeing 777 and Airbus A350 freighters.
- Saudia will focus on religious flights, while Riyadh Air will compete globally with Qatar Airways and Emirates.
- PIF’s new cargo airline will compete with Emirates and Qatar Airways, which have large cargo fleets and additional orders.
According to a recent report from Bloomberg, Saudi Arabia’s Public Investment Fund (PIF) is reportedly considering launching a brand new cargo airline, backed by new orders from Boeing and Airbus. The PIF acts as Saudi Arabia’s sovereign wealth fund, was established by the country in 1971 and is currently managed by Crown Prince Mohammad bin Salman.
The report cites unnamed sources who “familiar with the matter” and points out that the new freight operation will Saudi Arabia the flag bearer and Riyadh Air the country’s newest airline startup.
Boeing 777 and Airbus A350 cargo aircraft
Bloomberg’s sources also mention that the Boeing 777 and Airbus A350 freighter variants are of greatest interest to the PIF, although discussions are taking place at a “Early stage.” The PIF is talking not only to the manufacturers but also to the lessors to negotiate some kind of deal.
Photo: Airbus
Saudi Arabia’s continued push into the aviation industry comes as no surprise, as the country continues to have ambitions to invest in industries other than oil. It recently launched Riyadh Air, which it hopes will allow it to compete with neighboring countries on a global level. 
Qatar Airways And 
Emirate .
As we previously reported, the current national carrier Saudia will become the country’s second largest airline and will focus primarily on religious flights. Its main airport will be Jeddah, a gateway to the Islamic holy cities of Mecca and Medina. While Saudia will maintain this religious focus, Riyadh Air will aim for a more international outlook.
Saudia Cargo and its competitors
According to ch-aviation, Saudia Cargo’s current fleet is very limited. The most modern aircraft are Boeing 777-200Fs, of which the company owns four. They are on average 9.1 years old and are used worldwide. Destinations include Guangzhou, Hong Kong and Liege. They are all adorned with Saudia Cargo’s livery.
The rest of the fleet consists of three Boeing 747-400Fs, the characteristics of which are listed below.
|
Registration |
Old |
status |
|---|---|---|
|
9H-AKJ |
27.79 years old |
Active |
|
9H-AKA |
29.59 years old |
Active |
|
9H-AKF |
29.67 years old |
Maintenance in Taipei |
Photo: Max Walter | Shutterstock
As mentioned above, Emirates and Qatar Airways are the competitors of Saudi Arabia’s new cargo airline. Their respective fleets are currently quite large, especially compared to Saudia Cargo’s current one. Both airlines also have several orders for additional cargo aircraft, meaning that the PIF will have to work hard to really impact their operations and ultimately capture market share in the region.
Emirates SkyCargo has a fleet of 15 aircraft, according to ch-aviation. It also includes a mix of Boeing 777-200Fs and Boeing 747-400Fs. In July, the airline announced an order for five more 777 freighters, scheduled for delivery between 2025 and 2026. These aircraft will be used to increase capacity. It is also said that the new aircraft will serve to “decommissioning older freighters”, This probably refers to the Boeing 747. Regarding its cargo fleet, Emirates said in a statement last month:
“In addition to the ten Boeing 777Fs on order, the airline’s cargo capacity will be strengthened by the ten 777-300ERs that are currently being converted to freighters. This will bring Emirates’ cargo fleet to 17 aircraft by the end of 2025.
Related
Emirates orders five Boeing 777Fs for SkyCargo ahead of Farnborough Airshow
Emirates and Boeing have announced an order for five 777Fs worth one billion dollars.
Leveraging Emirates’ passenger fleet, the Cargo division will continue to provide fast, reliable and efficient global transportation of goods and offer customers greater flexibility with a fleet mix of 777, 777-F, 747F, A350 and A380.”
Photo: Angel DiBilio | Shutterstock
Qatar Airways has a leaner fleet in its cargo division, with a total of 28 Boeing 777-200Fs in operation, which are on average just seven years old. It has also ordered 34 Boeing 777-8Fs, with first delivery scheduled for 2027. The agreement also includes options for a further 16 aircraft, which, if exercised, would bring the total investment to around $20 billion at list prices.
