Saudi Arabian Airlines to buy 15 new aircraft

State-owned Saudi Arabian Airlines said yesterday that 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 $450 million at catalogue 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, MD11s 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 $20 million and $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 privatise Saudi Arabian Airlines, which remains the sole domestic carrier for now. . Source: http://www.khaleejtimes.com/index00.asp (Reuters)