- Demand for wide-body planes has picked up in recent months.
- Crown Prince Mohammad bin Salman announced the launch of a new airline, Riyadh Air, over the weekend.
Boeing said Tuesday that it has reached a deal to sell 78 of its 787 Dreamliner planes to two Saudi Arabian airlines, the latest large order for the wide-body jets in the past few months.
The jetliners will go to Saudi Arabian Airlines, or Saudia, and a new airline, called Riyadh Air, which Crown Prince Mohammad bin Salman announced over the weekend. Saudia ordered 39 of the planes, with options for 10 more, and Riyadh Air will get 39, with options for 33 more.
The sale shows a pickup in demand for wide-body aircraft, planes that are used for long-distance flights and fetch a higher price than the more-common narrow-body jets.
Riyadh Air is owned by the country’s sovereign wealth fund and will be helmed by Tony Douglas as CEO, a longtime industry veteran and former CEO of Etihad Airways.
In December, United Airlines agreed to buy at least 100 Dreamliners from Boeing and last month, Air India placed an order for 460 Boeing and Airbus planes.
This is breaking news. Check back for updates.
Source: Business - cnbc.com
