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Saudi Carriers Increase Fleet of Narrow-body Aircraft to Expand Regional Flights

A Saudi Arabian Airlines A320 aircraft (SPA)
A Saudi Arabian Airlines A320 aircraft (SPA)
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Saudi Carriers Increase Fleet of Narrow-body Aircraft to Expand Regional Flights

A Saudi Arabian Airlines A320 aircraft (SPA)
A Saudi Arabian Airlines A320 aircraft (SPA)

Saudi air carriers are moving to increase their fleet of narrow-body aircraft to expand short-distance regional flights, due to high demand.

This move comes within the framework of the national civil aviation strategy, which aims to reach 330 million passengers and 100 million tourists, while increasing the number of international destinations linked to the Kingdom to more than 250, by 2030.

Narrow-body or single-aisle aircraft are designated for nearby destinations, as they fly for a period ranging between 4 and 6 hours and carry up to 250 passengers.

Some of the most popular manufacturers of single-aisle aircraft are Boeing, Airbus, De Havilland, Tupolev and McDonnell Douglas.

Riyadh Air, which is wholly owned by the Public Investment Fund (PIF), intends to conclude a deal to purchase a large number of narrow-body aircraft, according to the company’s CEO Tony Douglas.

Douglas revealed that the company will operate a fleet of 200 aircraft to serve more than 110 destinations by 2030.

For his part, Assistant General Manager for Fleet Management at the Saudi Arabian Airlines Group, Saleh Eid, announced on Monday the signing of the largest aircraft deal in the company’s history to purchase more than 150 narrow-body aircraft before the end of 2023.

Flynas, the Saudi economic air carrier, recently received five new A320neo aircraft of this type, raising the size of its fleet to 56 aircraft, and bringing the number of narrow-body aircraft it received during 2023 to 11 out of a total of 19 aircraft that are scheduled to be delivered later this year.

In remarks to Asharq Al-Awsat, experts said that increasing the fleet of narrow-body aircraft serves the Kingdom, given its geographical location and that the connection with many international airports in less than seven hours.

They added that this move will achieve the Kingdom’s goals of reaching 100 million visitors in 2030, and expanding air connectivity with various countries of the world.

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OPEC Receives Compensation Plans from Iraq, Russia and Kazakhstan

A model of oil rigs in front of the OPEC logo (Reuters)
A model of oil rigs in front of the OPEC logo (Reuters)
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OPEC Receives Compensation Plans from Iraq, Russia and Kazakhstan

A model of oil rigs in front of the OPEC logo (Reuters)
A model of oil rigs in front of the OPEC logo (Reuters)

The Organization of the Petroleum Exporting Countries (OPEC) Secretariat said Wednesday that it received compensation plans from Iraq, Kazakhstan and Russia for their overproduced oil volumes in the first half of 2024.
OPEC said in a statement that the combined overproduction from the three countries totaled 2.28 million barrels per day (bpd) during the period.
The Organization added that the 37th OPEC and non-OPEC Ministerial Meeting (ONOMM) held on June 2, reiterated the critical importance of adhering to full conformity and the compensation mechanism.
In light of the above, the OPEC Secretariat said it received compensation plans from Iraq, Kazakhstan, and Russia for their overproduced volumes for the first six months of 2024 (January through June), which totaled about 1,184 tb/d for Iraq, 620 tb/d for Kazakhstan, and 480 tb/d for the Russian Federation, according to assessments made by the independent sources approved in the Declaration of Cooperation (DoC).
As a result, the three countries will trim output by varying amounts on a monthly basis, according to a table issued by OPEC, to compensate through September 2025.
Iraq and Kazakhstan will begin in July with 70,000 b/d and 18,000 b/d, respectively, while Russian cuts will begin in October.
The Platts OPEC+ Survey found Iraq produced 4.22 million b/d in June, against its quota of 4 million b/d. Russia pumped 9.10 million b/d (quota 8.978 million b/d) and Kazakhstan produced 1.54 million b/d (quota 1.468 million b/d) in the month.
Meanwhile, Russia would offset 40,000 bpd of oil overproduction in October-November 2024, while 440,000 bpd of excess output will be offset in March-September 2025, OPEC said.
Russian crude oil production in June exceeded quotas set by the OPEC+ group but the energy ministry pledged on Wednesday to stick to the required output level in July.
It said the production level was assessed by independent sources certified by the OPEC+ deal. These include international consultancies.
The ministry said Russia had sent its schedule on overproduction compensation to the OPEC secretariat, and that its oil output had fallen each month starting from April.
Deputy Prime Minister Alexander Novak said on Tuesday that Russia is producing close to its crude production cut target under the OPEC+ agreement.
Last month, Russia, in a rare admission of oil overproduction, said that it exceeded its OPEC+ production quota in April for “technical reasons.”
Meanwhile, Iraq has blamed high production estimates on its Kurdistan region, over which the government in Baghdad has little control.
“Iraq accounts for the largest share of the compensatory cuts. But Baghdad does not have oversight over production in the Kurdish Regional Government -- and has limited visibility over how much is even produced there,” said Jim Burkhard, Commodity Insights' vice president, oil markets, energy and mobility. “Unless KRG output is cut, then Iraqi federal production will have to be cut further. This would be a real challenge.”