Saudi Arabia’s sovereign wealth fund is in exploratory talks with aircraft manufacturers Boeing and Airbus for a new cargo airline, according to media reports.
The country’s Public Investment Fund (PIF) is reportedly in discussions with the manufacturers and lessors to acquire Boeing 777 and Airbus A350 freighters.
According to the news agency, the new carrier would provide freighter capacity for existing state flag carrier Saudia and start-up Riyadh Air. However, the report added, the talks are at an early stage and there is no guarantee that the scheme will come to fruition.
Saudi Arabia is evidently looking to emulate the examples of Abu Dhabi, Dubai, Qatar and other Gulf states in developing its position as a global logistics hub, including airfreight.
It would help Saudi Arabia diversify its economy from dependence on oil extraction and development of an all-cargo carrier would be part of a wider effort to develop the country’s aviation sector.
Riyadh Air, set up by the PIF, aims to challenge regional carriers such as Etihad and Emirates, both of whom have built up substantial freighter capacity as well as an extensive bellyhold network centred on their respective hub airports.
Saudia is being repositioned to focus on religious pilgrimage passenger business although its current cargo operation would be included in the new venture.