JEDDAH, 12 December 2007 — Saudi Arabian Airlines (Saudia) yesterday signed agreements for the purchase of 30 high-tech A320 planes from Airbus. The purchase is part of a strategic plan by the airline to modernize its fleet. Saudia also announced plans to lease 20 new aircraft to meet growing passenger demand.
Khaled Al-Mulhim, director general of the airline who signed the purchase deal with John Leahy, Airbus’ chief operating officer, said the first group of A320s would begin arriving in the Kingdom by the middle of 2012.
Saudia has already placed orders to buy 22 A320s at an estimated cost of $1.7 billion. Yesterday’s agreement allows the airline to purchase eight additional A320s and was its first order with the European plane-maker in more than 20 years.
Saudia’s board of directors, chaired by Crown Prince Sultan, approved the airline’s modernization plan during a meeting held a few months ago. Al-Mulhim said the 10-year strategic plan was prepared considering developments in the fast-growing aviation industry and the Kingdom’s economic position.
Al-Mulhim said A320 aircraft were selected considering technical features, good reputation and big demand. “It also provides a number of recreational facilities for passengers and flexibility to restructure seating arrangements in accordance with passenger requirements,” he explained.
He said the airline had decided to lease new planes considering the long period required for the arrival of new A320s. Saudia has signed a long-term deal with General Electric to lease 10 A320s and a letter of intent with Gulf One Investment Bank to lease 10 planes. The first group of these planes will arrive in the Kingdom in November 2009.
The four-member A320 family of Airbus is a significant sales success and a technological trailblazer.