Saudi Arabia to Launch New Airline, Riyadh Air

Update: Saudi Arabia’s Crown Prince Mohammed bin Salman announced on Sunday the launch of Riyadh Air, a new national airliner that will serve more than 100 destinations, state news agency SPA said.

SPA said that Riyadh Air is expected to add $20 billion to the kingdom’s non-oil GDP growth and create more than 200,000 direct and indirect jobs.

The original story follows: 

Saudi Arabia’s Public Investment Fund (PIF) is close to a deal for Boeing Co. commercial jets for the fleet of a new national airline, the Wall Street Journal reported on Saturday, citing people familiar with the matter.

The aircraft order is valued at $35 billion, the report said, adding that the deal could be announced as soon as Sunday during an official launch of the national airline.

The deal includes wide body jets which are often used for long international flights, the report added.

Boeing and Saudi PIF did not immediately respond to a Reuters’ request for comment on the report.

The deal is part of a rapid expansion by the country under a strategy to transform the kingdom into a transport hub and promote tourism.

(Reporting by Akanksha Khushi in Bengaluru; editing by Grant McCool and Franklin Paul)

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