Saudi Arabian Airlines is to buy 15 new aircraft to fly domestic and regional routes and boost its 139-strong fleet, said a report.
According to the report, a company official said all 15 planes will be the same 66-seat model but declined to give further details.
Analysts, quoted by the report, say the deal could be worth up to $450 million (Dh1.65 billion) at catalogue prices and would likely go to Brazil’s Embraer, Canada’s Bombardier or ATR, a unit of Airbus parent EADS.
The official said the purchase is the first since Saudi Arabian Airlines bought 61 Boeing and McDonnell Douglas planes including 747-400s, 777-200s, MD-11s and MD-90s which were delivered between 1997 and 2001.
Director-general Khaled Ben-Bakr said in a statement Saudi Arabian Airlines “is the first airline to purchase this type of aircraft in the Middle East”.
The purchase is fully self-financed by the airline, he said.
Industry sources, quoted by the report, said the cost of each plane was likely to be between $20 million (Dh73.4 billion) and $30 million (Dh110.1 billion), excluding maintenance and other costs.
The purchase was approved by the airline board of directors headed by Saudi Arabia’s Defence Minister Prince Sultan bin Abdul Aziz.
Saudi Arabia has for years said it plans to open up its aviation sector to competition and privatise Saudi Arabian Airlines, which remains the sole domestic carrier for now.
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