Saudi Arabia is negotiating the purchase of aircraft with Airbus and Boeing

According to the chief executive of Saudi Arabian Airlines (Saudia), the state-owned airline is in talks with Boeing Co. and Airbus SE about placing orders for both Saudi Arabian Airlines and a new carrier the country intends to start.
The talks are for aircraft for both airlines as they have the “same shareholder”, Ibrahim Koshy told Reuters on the sidelines of Saudi Arabia’s FII investment conference.
Reuters reported on Monday that Saudi Arabia’s wealth fund was in advanced negotiations to order almost 40 A350s from Airbus, with Boeing also lobbying for a slice of the kingdom’s aviation expansion despite a chill in U.S.-Saudi relations.
Several analysts believe an order could be split between the two plane giants.
Asked on Tuesday whether potential orders were for the new airline or Saudia, Koshy said “both”.
Provisionally named RIA, the new airline will be based in the capital Riyadh, while state airline Saudia will be based out of Jeddah under a transportation strategy that calls for the establishment of two hubs to rival the United Arab Emirates and Qatari carriers.
A person familiar with the plans has said the sovereign Public Investment Fund (PIF) has allocated hefty funds to create an ecosystem of cargo and passenger airlines, repair companies, and airports.
The PIF is looking at buying and leasing options for a fleet that could ultimately reach 200 airplanes, the person said.
Negotiations for an airplane purchase have been underway for months.
In November last year, Koshy told Reuters that Saudia was in talks with Airbus and Boeing for a wide-body jet order, with a decision expected sometime in 2022. In May, sources said the talks were aiming at a significant order.
A final decision depends on political approval at the highest level, according to industry sources.
As part of a government ambition to turn the kingdom into a transportation hub and encourage tourism, state-owned Saudia is planning its own rapid expansion over the next eight years.