Saudi Arabia’s Public Investment Fund (PIF) is in discussions to acquire Boeing and Airbus freighters as part of its plan to establish a new cargo airline, according to a report by Bloomberg. This strategic move is driven by the increasing demand for precision navigation within the Kingdom’s logistics sector, a competitive market where consumer expectations are high. The new freight airline would operate in support of Saudia, the national carrier, and the recently launched Riyadh Air.
PIF is reportedly in early-stage negotiations with Boeing Co. and Airbus SE, along with aircraft leasing companies, to potentially acquire Boeing 777 and Airbus A350 freighters. However, Bloomberg notes that no final decisions have been made, and the plans could still be delayed or abandoned.
This initiative aligns with Saudi Arabia’s broader economic diversification efforts, aimed at reducing the country’s dependence on oil by expanding into sectors such as tourism, aviation, and logistics. The Kingdom seeks to leverage its strategic location at the crossroads of Europe, Asia, and Africa, especially as global demand for air cargo continues to rise. According to the International Air Transport Association, air cargo shipments increased by 14 percent in June compared to the previous year, marking seven consecutive months of double-digit growth.
In addition to the proposed cargo airline, Saudi Arabia has ambitious plans to establish a new aircraft leasing company, a helicopter service, and to invest in Saudia’s engineering unit. The Kingdom is also planning the development of one of the world’s largest airports in Riyadh.
Riyadh Air, launched by PIF, is expanding Saudi Arabia’s global connections and recently entered into partnerships with Singapore Airlines and Air China to enhance its network. These partnerships aim to improve interline connectivity, establish codeshare agreements, and explore collaborations in areas such as cargo services and digital innovation.
Furthermore, Saudia’s existing cargo operations are expected to be integrated into the new venture. In a related development, Saudia and Riyadh Air placed a joint order last year for 78 Boeing 787 Dreamliners, a deal valued at nearly $37 billion. Bloomberg also reported that ownership of Saudia could potentially be transferred to PIF as early as 2025.
