Saudia to Buy Up to 100 Lilium Electric Aircraft for Domestic Network

A Saudi Arabian Airlines plane, is seen at the airport of the Red Sea resort of Sharm el-Sheikh, Egypt, August 9, 2021. (Reuters)
A Saudi Arabian Airlines plane, is seen at the airport of the Red Sea resort of Sharm el-Sheikh, Egypt, August 9, 2021. (Reuters)
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Saudia to Buy Up to 100 Lilium Electric Aircraft for Domestic Network

A Saudi Arabian Airlines plane, is seen at the airport of the Red Sea resort of Sharm el-Sheikh, Egypt, August 9, 2021. (Reuters)
A Saudi Arabian Airlines plane, is seen at the airport of the Red Sea resort of Sharm el-Sheikh, Egypt, August 9, 2021. (Reuters)

Saudi Arabian Airlines (Saudia) has signed an agreement with German air taxi developer Lilium to buy up to 100 of its aircraft for use on Saudia's domestic network, the state carrier's chief executive said on Wednesday.

Saudia CEO Ibrahim Koshy said the planes would be "a premium service" that carry four to six passengers, adding "it shows Saudia's commitment to sustainability because we're talking about 100% electric aircraft and we are the first airline in the MENA region that's introducing this as part of their network."

Certification by Saudi regulators is expected in 2025, he said.

Pricing has not yet been agreed because commercial terms have not been finalized, Koshy said.

Lilium, competing in a crowded market for electric Vertical Take-Off and Landing (eVTOL) vehicles, said last month it planned to set up capacity to build some 400 of its Lilium Jets a year, while tapping schemes that provide public research support.

In an interview after the announcement, Koshy said "in the course of this year," Saudia will be looking at an operational commercial network.

"We'll also be looking at the infrastructure that's required," adding because the aircraft are eVTOLs, they do not require airports.

"It's more like a port with charging stations, passengers embarking, disembarking, and that's going to require a whole infrastructure."

Public and private investors would have an opportunity to build such infrastructure, Koshy said, speaking at Saudi Arabia's flagship Future Investment Initiative (FII) conference.

Saudi Arabia aims to be carbon neutral by 2060.

Koshy on Tuesday said Saudia is in talks with planemakers Airbus and Boeing on orders for itself and a new carrier the Kingdom plans to launch, provisionally named RIA.



Gold Gains as Dollar off 2-month Highs on Fed Rate Cut Expectations

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
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Gold Gains as Dollar off 2-month Highs on Fed Rate Cut Expectations

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk

Gold extended gains after the release of the latest data on US producer prices on Friday, as the US dollar pulled back from two-month highs on heightened expectations for a Federal Reserve rate cut in November.

Spot gold rose 0.7% to $2,647.55 per ounce by 1316 GMT. US gold futures gained about 1% to $2,665.

US producer prices were unchanged in September, pointing to a still-favorable inflation outlook and supporting views that the Fed would cut interest rates again next month.

"After stronger-than-expected US jobs data and higher-than-expected inflation data, the market is a bit split on how many rate cuts we will see from the Fed over the coming months," UBS analyst Giovanni Staunovo said, Reuters reported.

Data on Thursday showed US consumer prices rose slightly more than expected in September, but the annual increase in inflation was the smallest in more than 3-1/2 years.

Slowly cooling inflation and a US job market that remains strong but at the risk of deteriorating give a green light for more interest-rate cuts in coming months, Fed policymakers indicated on Thursday.

The CME FedWatch tool shows markets currently see an 84.4% chance of a 25-basis-point rate reduction in November and a 15.6% probability of the Fed keeping rates on hold.

"Gold prices are likely to stay volatile in the short term, but we look for higher prices as we look for further rate cuts by the Fed," Staunovo said.

Gold is on track for its second straight week of declines after prices retreated from a record high of $2,685.42 hit last month.

Physical gold dealers in India charged premiums for the first time in two months this week as the upcoming festival season attracted some jewellery buying.

Spot silver rose 0.7% to $31.41 per ounce and platinum climbed 1.2% to $979.20. Both metals were headed for weekly declines.

Palladium firmed 0.2% at $1,071 and was up nearly 6% for the week.