Saudi Arabia’s Public Investment Fund is close to a deal for Boeing Co. (NYSE:BA) jets with an order value of $35 billion.
The order is expected to be announced amid the official launch of a new national airline on Sunday, according to a WSJ report on Saturday, which cited people familiar. The new carrier is called Riyadh Air.
The aircraft order is expected to include wide-body jets used in long-haul international flights, the WSJ report said. A possible Saudi order had been expected to include as many as 100 or airplanes.
The news comes as Boeing (BA) and rival Airbus (OTCPK:EADSY) had been competing for the Saudi order for months. Bloomberg reported in late October that Saudi Arabia was in advanced talks with Boeing and Airbus to order ~80 jets, part of an effort to launch a new airline and challenge heavyweight carriers in the Persian Gulf.
Last month Air India announced an order for 470 planes from Boeing (BA) and Airbus (OTCPK:EADSF) in record-setting deals for the commercial aviation industry. The order includes 220 Boeing jets valued at $34 billion, with 190 737 Max aircraft, 20 787 Dreamliners and 10 of the company’s 777Xs.