The WSJ is reporting that two airlines in Saudi Arabia are close to ordering a total of 80 Boeing 787s with an option to buy about 40 more.
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The new Riyadh Air is expected to acquire 39 and Saudia will buy a similar number and the purchases are part of a major push by the Saudis to move into tourism and trade to diversify its economy.
The potential Boeing aircraft order is valued at about $35 billion, while Airbus is also expected to be part of the order mix.
According to the WSJ, the “government has earmarked $1 trillion over the next decade to turn the kingdom into a mass-market tourism destination, after many years of self-imposed isolation. A nascent cruise sector, luxury Red Sea resorts and eco-lodges in the desert are all in the works. A second international airport in Riyadh is also being planned.”
The new airline will “leverage Saudi Arabia’s strategic geographic location between the three continents of Asia, Africa and Europe, enabling Riyadh to become a gateway to the world and a global destination for transportation, trade, and tourism,” Saudi Crown Prince Mohammed bin Salman said Sunday.
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