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Be the first with the news that moves the market- Boeing (BA) confirmed two orders Tuesday from Saudi Arabia, which together would be the fifth-largest ever for its passenger planes
- The company received orders for up to 121 of its 787 Dreamliner aircraft from two Saudi Arabian airlines
- The two orders can be worth up to US$37 billion if all options are fully-exercised
- Saudi Arabia hopes to attract 100 million visitors per year by 2030
- Boeing (BA) closed up by 1.92 per cent trading at $207.28
Boeing (BA) confirmed two orders Tuesday from Saudi Arabia, which together would be the fifth-largest ever for its passenger planes.
The Chicago-based aerospace company received an order from Saudi Arabian Airlines (SAUDIA) for 39 firm orders for its 787 Dreamliner plane. The country’s flagship carrier also has an option for an additional 10 of the wide-body jets.
The order is for both the 787-900 and 787-1000 models.
Additionally, newly-formed Riyadh Airlines placed a firm order for 39 Dreamliner aircraft. It also has an option for 33 more of the planes.
Riyadh is a newly-formed airline, owned by Saudi Arabia’s Public Investment Fund. Saudi Arabian Airlines, the country’s flagship carrier, is government-owned.
Collectively, the two orders can be worth up to US$37 billion if all options are fully-exercised.
Boeing’s Dreamliner first flew in 2009 and can be up to 25-percent more fuel-efficient than the aircraft they typically replace.
The purchases of the long-haul planes are part of a growth strategy on the part of the Saudi government as it attempts to lure tourism and the accompanying economic benefits to the Kingdom.
The country hopes to serve 330 million passengers and attract 100 million visitors per year by 2030.
“The new airline reflects the ambitious vision of Saudi Arabia to be at the core of shaping the future of global air travel and be a true disrupter in terms of customer experience,” said Riyadh Air CEO Tony Douglas.
Depending on the configuration, the planes can carry between 250 and 290 passengers.
The 787-9 provides the longest range and can fly 14,010 kilometres.
“This is a significant order that will support Riyadh Air’s commitment to deliver a world-class travel experience, while supporting American aerospace manufacturing jobs at Boeing and across our supply chain,” Boeing Commercial Airplanes President and CEO Stan Deal said in a statement.
“We are incredibly proud of our nearly eight decades of partnership to drive innovation and sustainable growth in Saudi Arabia’s aviation sector. Our agreement builds on that longstanding partnership and will further expand access to safe and sustainable commercial air travel for decades more,” he added.
Boeing (BA) closed up by 1.92 per cent trading at $207.28.
