Riyadh Air, the new national carrier of Saudi Arabia, is in talks with Boeing and could order 150 737 MAX 8 aircraft, according to a report from Bloomberg.
The order, which could be formalized at the upcoming Paris Air Show, would have a value of around eight billion dollars at current list prices, before considering possible discounts.
See also: Riyadh Air bets on the Boeing 787 Dreamliner and orders up to 72 airplanes
Riyadh Air would opt for the 737 MAX
If realized, this would be the second major agreement between the airline and the American manufacturer this year. Just a few days after its official launch in March, Riyadh Air confirmed an order for 39 Boeing 787-9 aircraft, which also includes an option to purchase 33 additional planes.
According to information provided by Bloomberg, sources close to the company, which is owned by the Public Investment Fund (PIF), state that initially they would finalize orders for between 300 and 400 narrow-body aircraft, including additional purchase options. Riyadh Air would join a growing number of airlines that have recently confirmed their intention to buy hundreds of planes.
In this context, the competition between Airbus and Boeing is intensifying. However, the European company currently has few options for delivering new A321neo aircraft, one of the main competitors of the 737 MAX, until the end of this decade.
Airbus recently notified its customers that delays in deliveries of A320 family aircraft could occur next year, but Boeing is not exempt from this issue either. Amid the repeated disruptions in global supply chains, the two largest aircraft manufacturers have delayed deliveries in the short term and reduced the notice time for these retards to their customers.
Riyadh Air is part of a 100 billion dollars state initiative to promote the growth of the commercial aviation market in a region characterized by the presence of major operators such as Emirates, Etihad Airways, and Qatar Airways. Therefore, a new contract with Boeing would represent a significant victory for the American manufacturer.
See also: Cathay Pacific nears deal for Boeing 777-8F aircraft
