Saudi Arabia is reportedly negotiating with Airbus SEEADSYEADSF to order almost 40 A350 jets.
According to industry sources, the country is planning to launch a new airline and challenge heavyweight carriers in the Gulf.
Reuters first reported in August that Saudi Arabia was discussing a significant order for wide-body jets.
Bloomberg News reported on Sunday that a deal could involve up to 80 aircraft.
The new airline will be based in Riyadh, while state airline Saudia will be based out of the Red Sea city of Jeddah under a transportation strategy.
If confirmed, Reuters reported the purchase by the sovereign Public Investment Fund (PIF), worth $12 billion at list prices, could be announced as early as this week when Riyadh hosts the Future Investment Initiative (FII).
As per the sources, it could not be confirmed if Boeing CoBA could also have a slice of this substantial order, which will be named RIA. One source familiar with the negotiations cautioned that it was “not over yet.”
PIF has been negotiating to buy some 75 jets, and another source said the kingdom was leaning toward the Boeing 787. Reports have said that the airline may also need narrow-body jets.
According to the report, any commercial deal must still win political approval and also depends on complex engine negotiations.
Price Action: EADSY shares closed at $25.07 on Friday.
