Saudi Arabia's flagship carrier is in talks with Boeing Co and Airbus SE for what could be its largest plane purchase yet, committing billions of dollars towards becoming a travel and tourism hub.
(Feb 6): Saudi Arabia's flagship carrier is in early talks with Boeing Co and Airbus SE for what could be its largest plane purchase yet, as the kingdom commits billions of dollars towards becoming a travel and tourism hub.
Saudia wants to buy at least 150 narrowbody and widebody jets, according to people familiar with the matter. The airline is studying models from both manufacturers and hasn't decided on types or quantities, said the people, who asked not to be identified because the negotiations are private.
The new planes would replace some of the carrier's 200-strong fleet while also bolstering that number, the people said. The discussions are preliminary and may not result in a deal.
Boeing and Airbus declined to comment. Saudia didn't immediately respond to a request for comment.
The 80-year-old airline has placed large orders before, buying 105 Airbus narrowbody jets in 2024. The year before, it ordered more than three dozen 787 Dreamliners from Boeing, with an option for another 10.
State-owned Saudia is being repositioned to focus on religious pilgrimages while startup Riyadh Air intends to be a more upmarket carrier for tourists when it begins operating.
In recent years, Saudia overhauled its senior management, partnered with sports teams, agreed to equip some planes with SpaceX's Starlink Internet service and placed greater emphasis on passengers' in-flight experiences.
Saudi Arabia is spending billions to overhaul airports, order aircraft for its airlines and aircraft lessors and aerospace infrastructure as the once-closed off nation looks to diversify the economy away from oil and transform into a global aviation, tourism and logistics hub.
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