Airline supply chain issues improving: Riyadh Air CEO

Miami: Supply chains for jet manufacturer majors Boeing and Airbus are showing signs of moderate improvement, according to Riyadh Air CEO Tony Douglas.

"Are there big challenges out there - yes there definitely are. Is the supply chain stretched and under huge stress - yes, and yes," Douglas, the former chief executive of Abu Dhabi’s Etihad Airways, told an FII Institute event in Miami.

"But am I seeing signs of moderate improvement - I honestly have to say, yes I do,” said Douglas.

Securing adequate parts, for both new and existing planes, has been a major problem for the airline industry in recent years. 

Douglas said Riyadh Air was working to overcome any challenges, without adding further details, according to a Reuters report. He also said one continued bottleneck was the suppliers that serve both Boeing and Airbus, which he described as being "one level down".

Backed by Saudi Arabia's Public Investment Fund, Riyadh Air has been ordering planes from both manufacturers ahead of its launch. This includes 60 narrow-body A321-family jets from Airbus in October, as well as up to 72 Boeing 787 Dreamliners ordered in March 2023.

The airline is currently engaged in a process to select extra wide-body jets, Douglas said, without elaborating further.

Douglas told Reuters in October it was planning to talk to Airbus about A350-1000 aircraft and Boeing on its 777X jets.

Riyadh Air is expected to start operations by the end of the year, Douglas told the event.