HiJazzey
Topic Author
Posts: 667
Joined: Fri Sep 09, 2005 3:00 am

Aircraft Assembly In Saudi?

Sun Oct 29, 2006 3:01 am

Hi everyone,

Earlier this year, some details of the latest phase of the Yamamah offset programme between Saudi Arabia and the UK became public. One such detail is the revelation that some of the Eurofighter Typhoons acquired by Saudi will be assembled in Saudi Arabia.

My hunch is that the first tranche of planes will arrive finished, and the later batches will be built locally. This would give enough time for the building of necessary facilities and the recruitment and training of staff.

Now I'm thinking, what will be next when Eurofighter production ends? Do you think Saudi can participate in the production of future civilian aircraft? Maybe not work with Boeing or Airbus, but how about corporate jet assembly with Bombardier or Embraer? The middle east is a very big market for corporate jets and I'm sure Saudi (or shall I say SAIC) would be more than willing to become a risk sharing partner in any new corporate jet development.

So what do you think? Would it be realistic to see Saudi built civilian aircraft, or is this just a pipe dream by me?

Your comments and views much appreciated
 
Lumberton
Posts: 4176
Joined: Fri Jul 29, 2005 7:34 am

RE: Aircraft Assembly In Saudi?

Sun Oct 29, 2006 3:20 am

Generally companies will co-produce to be closer to their markets, or as is the case with the Typhoon sale to Saudia Arabia, to clinch the deal with offsets. I guess it would depend on the size of the market, or the extent to which the Saudi government was willing to help bankroll a collaborative effort like this. I'm not sure what advantage would be gained by co-producing in Saudi Arabia? Just guessing, I would suspect that the UAE--particularly Dubai--would have an advantage here given the facilities they're developing and the more cosmopolitan environment.
"When all is said and done, more will be said than done".
 
HiJazzey
Topic Author
Posts: 667
Joined: Fri Sep 09, 2005 3:00 am

RE: Aircraft Assembly In Saudi?

Sun Oct 29, 2006 3:50 am

Hi Lumberton,

Thanks for your reply.

Quoting Lumberton (Reply 1):
Generally companies will co-produce to be closer to their markets,

I kind of aluded to that in my previous post. The middle east is a very large market for corporate/VIP jets, so producing there would be a good idea from the perspective of being close to your customers.

Quoting Lumberton (Reply 1):
I'm not sure what advantage would be gained by co-producing in Saudi Arabia? Just guessing, I would suspect that the UAE--particularly Dubai--would have an advantage here given the facilities they're developing and the more cosmopolitan environment.

Not really. Comparing Dubai and Saudi Arabia is like comparing apples and oranges. The dynamics are very different. Saudi Arabia is a more mature economy, with a much more developed industrial base. Dubai is an offshore haven.

Dubai may be socially prefferable, but in hard nosed terms Saudi is a better choice.