Andrew McIntosh
Boeing makes both models in its Everett factories, so the order boosts what has been a slow market for global wide-body jet sales in 2016.
Two of Boeing’s top executives suggested in recent months that they may have to cut production without new sales by the end of the year.
Boeing (NYSE: BA) declined to comment on the airline’s announcement or the terms of the contract.
Sulaiman Alhamdan, Saudi Arabia’s transportation minister and the airline’s chairman, announced the country’s aircraft purchases on the country’s national holiday Friday, saying the shopping spree aims to upgrade the airline’s operational efficiency and effectiveness while improving its ” total customer experience.”
Boeing’s jet sale emerged on the same day President Barack Obama vetoed legislation in Congress that would have allowed families of 9/11 victims to sue the Saudi Arabian government for any role it may have played in the terrorist attacks.
Alhamdan also announced the Kingdom was buying 35 Airbus aircraft, including A320s and A321neo (new engine option) jets. No further details about the Airbus order were provided.
The Saudi airline said its aircraft purchases will help grow its fleet from 119 to to 200 aircraft by 2020 and move 45 million passengers a year on 1,000 daily flights around the world.
Alhamdan said the airline would take 30 jet deliveries in 2017, an unprecedented number in its 71 year history.
Part of the Boeing and Airbus purchases include plans to train Saudi workers so they’re prepared operate and maintain the new aircraft, said Saleh Aljasser, Saudi Arabian Airline’s director general of engineering.
Aljasser said the airline signed an agreement with the Saudi Arabia Ministry of Education to provide 5,000 scholarships to send Saudi students to study aviation and aircraft maintenance abroad.
The airline said it has removed four Boeing 747-400 aircraft from service this year and plans to phase out 23 Boeing 777-200s from its fleet in 2016 and 2017.
Andrew McIntosh covers aerospace and manufacturing for the Puget Sound Business Journal.
