SkyFan
April 22nd, 2005, 07:15 PM
Saudi Arabian To Buy 15 New Aircraft
State-owned Saudi Arabian Airlines said on Friday it will buy 15 new aircraft to fly domestic and regional routes and boost its 139 strong fleet.
A company official said all 15 planes will be the same 66 seat model but declined to give further details.
Analysts say the deal could be worth up to USD$450 million at list prices and would likely go to Brazil's Embraer, Canada's Bombardier or ATR, a unit of Airbus parent EADS.
The official said the purchase is the first since Saudi Arabian Airlines bought 61 Boeing and McDonnell Douglas planes -- including 747-400s, 777-200s, MD-11s and MD-90s -- which were delivered between 1997 and 2001.
Director general Khaled Ben-Bakr said in a statement Saudi Arabian Airlines "is the first airline to purchase this type of aircraft in the Middle East". The purchase is fully self-financed by the airline, he added.
Industry sources said the cost of each plane was likely to be between USD$20 million and USD$30 million, excluding maintenance and other costs.
The purchase was approved by the airline board of directors headed by Saudi Arabia's Defence Minister Prince Sultan bin Abdul-Aziz.
Saudi Arabia has for years said it plans to open up its aviation sector to competition and privatize Saudi Arabian Airlines, which remains the sole domestic carrier for now.
(Reuters)
State-owned Saudi Arabian Airlines said on Friday it will buy 15 new aircraft to fly domestic and regional routes and boost its 139 strong fleet.
A company official said all 15 planes will be the same 66 seat model but declined to give further details.
Analysts say the deal could be worth up to USD$450 million at list prices and would likely go to Brazil's Embraer, Canada's Bombardier or ATR, a unit of Airbus parent EADS.
The official said the purchase is the first since Saudi Arabian Airlines bought 61 Boeing and McDonnell Douglas planes -- including 747-400s, 777-200s, MD-11s and MD-90s -- which were delivered between 1997 and 2001.
Director general Khaled Ben-Bakr said in a statement Saudi Arabian Airlines "is the first airline to purchase this type of aircraft in the Middle East". The purchase is fully self-financed by the airline, he added.
Industry sources said the cost of each plane was likely to be between USD$20 million and USD$30 million, excluding maintenance and other costs.
The purchase was approved by the airline board of directors headed by Saudi Arabia's Defence Minister Prince Sultan bin Abdul-Aziz.
Saudi Arabia has for years said it plans to open up its aviation sector to competition and privatize Saudi Arabian Airlines, which remains the sole domestic carrier for now.
(Reuters)