November 29, 2023

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Boeing works to win one other Saudi deal, this time for 737 Max

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Riyadh: Boeing is working to land its second main deal in Saudi Arabia this yr, with the US planemaker in talks to promote at the least 150 of its 737 Max jetliners to startup Riyadh Air, in line with folks conversant in the matter.

The brand new service, owned by Saudi Arabia’s sovereign wealth fund, is searching for about 300 to 400 single-aisle jets in complete, together with choices, mentioned the folks, who requested to not be recognized for the reason that discussions are non-public. Talks are difficult, with timing and construction nonetheless in flux, and Airbus might additionally declare a portion of the order, a few of the folks cautioned.

Boeing is urgent its benefit since Airbus has few obtainable supply slots for its A321neo jets earlier than 2029, mentioned the folks. Negotiations proceed, with a potential announcement on the Paris Air Present in mid June, although no determination has been made, they mentioned.

A Boeing spokesman declined to remark, as did representatives at Riyadh Air and the Saudi Public Funding Fund.

A second main win would give Boeing an edge in a Gulf market primed for progress.

The sooner deal coated Boeing’s bigger 787 Dreamliners to deal with long-range flying for Riyadh Air and the present flag-carrier, Saudia.

On the present $53 million going charge for a Max 8, a 150-jet order can be valued at about $8 billion, based mostly on market-value estimates compiled by guide Ascend by Cirium. Clients sometimes get steep reductions for big offers.

Riyadh Air was formally unveiled in March to make Saudi Arabia’s economic system much less depending on oil.

Saudia now predominantly serves Jeddah and the Hajj pilgrimage market.

As a part of the March accord, Riyadh Air is ready to obtain 39 787-9 jets, with choices for 33 extra. Run by former Etihad Aviation Group boss Tony Douglas, the service goals to attach greater than 100 locations world wide by 2030.

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