JEDDAH, 12 November 2007 — Saudi Arabian Airlines will purchase a number of Airbus A320 planes as part of a strategic plan to modernize its fleet, replacing old planes that have already been grounded with the introduction of new high-tech ones, the Saudi Press Agency said.

The plan to purchase new aircraft and sign long-term contracts to lease planes has been approved by the airline’s board of directors, chaired by Crown Prince Sultan, deputy premier and minister of defense and aviation and chairman of Saudia.

The move comes in the wake of growing passenger traffic to and from Saudi Arabia, including millions of pilgrims who come for Haj and Umrah. The annual Umrah pilgrim flow is expected to reach 10 million within the next few years.

The new purchase and leasing deals will be financed using Saudia funds as well as Islamic financing services from local banks. Saudia, the largest airline in the Middle East, has 120 passenger and cargo planes.

“In the first phase of its strategic plan, A320 planes will be purchased directly from Airbus and long-term contracts will be signed with specialized aircraft leasing firms,” SPA said, quoting an official statement, adding that more planes will be purchased and leased on a long-term basis in the second phase.

Prince Sultan said the modernization of the fleet was essential to privatize the airline’s aviation services and take optimum advantage of increasing air traffic in the Kingdom in the wake of Saudi airport expansions, especially in Jeddah and Madinah.

The aircraft purchase deal with Airbus includes training Saudi pilots, provision for advanced training equipment at the Prince Sultan Aviation Academy and transfer of advanced technology to the Kingdom for the operation and maintenance of A320 planes.

Khaled Al-Mulhim, director general of Saudia, said the 10-year strategic plan was aimed at improving the airline’s overall services and preparing it for privatization. He also highlighted the advanced technological facilities of A320 planes.

The four-member A320 family of Airbus is a significant sales success and a technological trailblazer. The A320 is best known as the first aircraft to introduce a fly-by-wire flight control system, where control inputs from the pilot are transmitted to the plane’s parts through electronic signals rather than mechanical means.