Saudi Arabia Pursues Second National Airline, Signs $46 Trillion Contract with US Boeing

[Asia Economy Reporter Oh Su-yeon] Saudi Arabia is discussing an aircraft purchase contract worth $35 billion (approximately 46.305 trillion KRW) with the US Boeing Company to establish a second national airline.

The US Wall Street Journal (WSJ) reported on the 11th that the Saudi sovereign wealth fund PIF has been pursuing a plan to purchase aircraft worth a total of $35 billion from Boeing, and the deal is reportedly close to completion.

[Image source=Reuters Yonhap News]

WSJ stated that PIF is expected to announce this at the launch ceremony of Saudi Arabia's second national airline soon.

Saudi Arabia is known to be promoting the establishment of a second national airline, RIA, to move away from its oil-centered economic structure. Saudi Arabia currently operates its national airline, Saudia.

Through this contract, Saudi Arabia will purchase about 100 aircraft. Insiders familiar with the contract said, "Boeing and Europe's Airbus have been competing for months to win the contract," and "If Boeing secures the deal, tens of thousands of jobs will be created in the US."

WSJ explained that this deal is the result of efforts to ease tensions and enhance cooperation between the US and Saudi governments.

This content was produced with the assistance of AI translation services.