Saudi low-cost carrier to acquire Boeing aircraft

03 January 2019
Flyadeal has committed to purchase 30 Boeing 737 Max aircraft with an option for 20 more

Saudi Arabian low-cost carrier Flyadeal has selected US-based Boeing's 737 Max aircraft as the model for its fleet expansion.

The firm committed to order 30 planes with an option for 20 more, in a deal worth an estimated $5.9bn at list price, it was announced in December.

MEED understands the terms of the purchase agreement are yet to be finalised.

Flyadeal CEO, Con Corfiatis, told MEED in mid-December they were “very close” to making a purchase decision on 50 narrow-body aircraft it plans to acquire.

Flyadeal is the low-cost arm of Saudi Arabian Airlines (Saudia), the kingdom’s national carrier. It began operations in September 2017.

It currently operates nine Airbus A320s between domestic destinations including Riyadh and Jeddah. The aircraft are leased from Dubai Aerospace Enterprises.

There are plans to list the carrier’s shares on the Saudi Stock Exchange (Tadawul), along with its parent company Saudia.

In November, privately-owned carrier SaudiGulf Airlines made an order for 10 Airbus A320/A321neo aircraft with an option to acquire 10 more.

The deal is worth $2.1bn, according to Samer Majali, SaudiGulf CEO. Delivery is expected to commence in the second half of 2019, at a rate of eight new units a year.

SaudiGulf, which is a full-service carrier, began commercial operations in October 2016.

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