The Saudi Arabian airline is in talks to sell at least 150 of its 737 Max jetliners to Riyadh Air, according to people familiar with the matter.
The new airline, owned by the Saudi Arabian sovereign wealth fund, is shopping for about 300 to 400 single-aisle jets in total, including options, the company said in a statement. Talks are complicated, with timing and structure still in flux, and Airbus SE could also claim a portion of the order, some of the people cautioned.
As Airbus has few available delivery slots for its A 321 neo jets before 2029, Boeing is pressing its advantage. Negotiations continue, with a possible announcement at the Paris Air Show in mid-June, though no decision has been made.
A Boeing spokesman declined to comment, as did representatives at Riyadh Air and the Saudi Public Investment Fund.
A second major win would give Boeing a foothold in a market primed for growth. The prince of Saudi Arabia, Mohammed Bin Salman, is building a rival to the regional powerhouses Emirates and Qatar Airways. The relationship between the US and Saudi has beenstrained due to oil policy issues, which have led to tensions between the two nations.
The deal included Boeing's larger 787 Dreamliners to handle long distance flying for Riyadh Air and the current flag-carrier, Saudia.
At the current $53 million going rate for a Max 8, a 150-jet order would be valued at about $8 billion, based on market-value estimates compiled by consultant Ascend by Cirium. For large deals, customers typically get steep discounts.
In March, Riyadh Air was formally unveiled as part of Bin Salman's initiative to make Saudi Arabia's economy less dependent on oil. He wants to create a powerful business hub and compete with larger Gulf airlines for global transfer traffic. Saudia is now mainly serving Hajj pilgrimage and Jeddah.
As part of the March accord, Riyadh Air is set to receive 9 jets, with options for 33 more. By 2030, the airline aims to connect more than 100 destinations across the globe.
With assistance from Ben Bartenstein, Danny Lee, Matthew Martin and Layan Odeh.
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