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.



WTO: Global Trade Could Climb 3% in 2025 if MidEast Conflicts Contained

FILE - Containers are piled up in the harbor in Hamburg, Germany, Wednesday, Oct. 26, 2022. (AP Photo/Michael Probst, file)
FILE - Containers are piled up in the harbor in Hamburg, Germany, Wednesday, Oct. 26, 2022. (AP Photo/Michael Probst, file)
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WTO: Global Trade Could Climb 3% in 2025 if MidEast Conflicts Contained

FILE - Containers are piled up in the harbor in Hamburg, Germany, Wednesday, Oct. 26, 2022. (AP Photo/Michael Probst, file)
FILE - Containers are piled up in the harbor in Hamburg, Germany, Wednesday, Oct. 26, 2022. (AP Photo/Michael Probst, file)

The World Trade Organization on Thursday nudged up its forecast for global trade volumes this year and said a further pick up to 3% growth was likely in 2025, assuming Middle East conflicts are kept in check.
Global trade recovered this year from a 2023 slump driven by high inflation and rising interest rates, the WTO report said. In April, the global trade watchdog forecast a 2.6% increase in volumes, which it revised up on Thursday to 2.7%, Reuters reported.
"We are expecting a gradual recovery in global trade for 2024, but we remain vigilant of potential setbacks, particularly the potential escalation of regional conflicts like those in the Middle East," said WTO Director-General Ngozi Okonjo-Iweala in a statement.
"The impact could be most severe for the countries directly involved, but they may also indirectly affect global energy costs and shipping routes."
Israel's blitz against Lebanon's Hezbollah in recent weeks, following a year-long war against Hamas in Gaza, has stoked fears of an inexorable slide towards a pan-Middle Eastern war.
The WTO also cited diverging monetary policies among major economies as another downside risk for the forecasts. This "could lead to financial volatility and shifts in capital flows as central banks bring down interest rates," the report said, adding that this would make debt servicing more challenging for poorer countries.
"There is also some limited upside potential to the forecast if interest rate cuts in advanced economies stimulate stronger than expected growth without reigniting inflation," the WTO said.