Saudi Arabia’s Riyadh Air, formed by the Public Investment Fund, is nearing an agreement to acquire up to 100 Boeing Co. 737 Max jets for its short-haul fleet, Bloomberg reported citing sources familiar with the matter.
The carrier, a key component of Crown Prince Mohammed Bin Salman’s economic diversification plan for Saudi Arabia, is contemplating a solid order for 50 jets, accompanied by a similar number of options.
Discussions are in their final stages, and the precise number may undergo slight adjustments, the report said.
Saudi Arabia’s Riyadh Air at Dubai Airshow
Riyadh Air aims to expand its network, challenging established regional players, aligning with Crown Prince’s vision of transforming Riyadh into a prominent business center and competing with larger Gulf airlines for global transfer traffic.
Should the deal materialise, it would signify another triumph for Boeing. The US manufacturer previously secured an agreement with Riyadh for potentially acquiring 72 787 wide-body aircraft in March.
The preference for Boeing in the single-aisle purchase stems, in part, from Airbus SE’s inability to offer near-term delivery slots for its A320 family, which is largely booked for the remainder of the decade.
Meanwhile, the biennial Dubai Air Show, beginning on Monday, is anticipated to witness major aircraft order announcements from various airlines, including local giant Emirates.
During a recent interview, Douglas, a spokesperson for Riyadh Air, hinted at a substantial purchase of single-aisle aircraft from one manufacturer, the report said, adding that however, the specific model chosen by the carrier was not disclosed.
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