India And Saudi Arabia’s Record-Breaking Aircraft Deals Signal A New Travel Boom

India And Saudi Arabia’s Record-Breaking Aircraft Deals Signal A New Travel Boom

Less than two years after the 9/11 terrorist attacks, airline executives gathered in Paris in June 2003 for the biennial gathering of the world’s leading aviation players. The industry desperately needed a jolt of confidence.

Enter Emirates Airline, the rising Dubai-based global carrier, with a record-breaking order for aircraft from Airbus and Boeing. In a $12.5 billion deal with Airbus, Emirates agreed to buy 41 new planes, including 21 of the double-decker behemoth A380 aircraft. Emirates also agreed to lease more than two dozen Boeing 777’s at the same air show.

“The huge Emirates order galvanized the post-9/11 international traffic and jetliner market recovery,” says Richard Aboulafia, managing director of AeroDynamic Advisory and a veteran aviation specialist. “The industry really needed that boost.”

Entering 2023, the industry needed a similar boost. Still smarting from the dramatic fall in profits and passenger numbers due to the Covid-19 pandemic, global airlines are limping back toward profitability in 2023, according to the International Air Transport Association. While air passenger numbers reached 82% of pre-pandemic levels by the end of 2022 and sentiment had been improving, the industry still needed more.

Enter India and Saudi Arabia.

In February, Air India placed the largest aircraft order in history - a