Saudi Arabia’s Flynas considering upgrading Airbus A320neo order

A model of Saudi airline Flynas is on display during a ceremony to sign a deal between Airbus andFlynas in Riyadh, Saudi Arabia January 16, 2017. (Reuters/File Photo)
Updated 30 April 2019

Saudi Arabia’s Flynas considering upgrading Airbus A320neo order

  • Larger versions of Airbus’ new model would mainly be used for flights to Sub-continent and North Africa
  • Flynas is scheduled to take delivery of five A320neos in 2019.

DUBAI: Saudi Arabian airline Flynas is considering upgrading part of its existing order for 80 Airbus A320neo jets to the larger A321 model, its chief executive said on Tuesday.
The airline, part owned by Saudi billionaire Prince Alwaleed Bin Talal’s firm Kingdom Holding, ordered the A320neos worth $8.6 billion in 2017.
“We (have) started evaluating and are in discussion with Airbus,” Bander Abdulrahman Al-Mohanna said.
The larger versions of Airbus’ new model narrow-body jet would mainly be used for flights to the Sub-continent and North Africa, he added.
Mohanna did not say how many A321neos it could take as part of a potential order upgrade or when a decision could be made.
The airline, which this year expects 10 percent growth on the 6.6 million passengers it carried in 2018, has also been considering an order for wide-body jets.
Flynas is weighing up Airbus’ A330neo and Boeing’s 787-8 jets, which would be used to carry Muslim pilgrims to Saudi Arabia, home to the two holiest sites in Islam.
“Unless we receive the offer that we are expecting we will not conclude any deal,” Mohanna said.
The airline is in talks with international banks to raise $250 million to $300 million to finance aircraft order payments, which it expects to close this year, he said.
Flynas is scheduled to take delivery of five A320neos in 2019.
The airline expects to report its fifth consecutive profit this year although Mohanna warned overcapacity in the domestic market was driving down ticket prices.
“The situation in the domestic market is not healthy. The overcapacity is huge,” he said.


IMF warns of Asia’s darkening growth outlook as trade war bites

Updated 18 October 2019

IMF warns of Asia’s darkening growth outlook as trade war bites

  • The IMF cut its economic growth forecast for the Asia-Pacific region to 5.0 percent for this year and 5.1 percent for 2020
  • It also slashed China’s growth forecast to 6.1 percent for this year and 5.8 percent for 2020
WASHINGTON: Asian nations face heightening risks to their economic outlooks as the US-China trade war and slumping Chinese demand hurt the world’s fastest-growing region, the International Monetary Fund said on Friday.
In its World Economic Outlook report on Tuesday, the IMF cut its economic growth forecast for the Asia-Pacific region to 5.0 percent for this year and 5.1 percent for 2020 — the slowest pace of expansion since the global financial crisis more than a decade ago.
“Headwinds from global policy uncertainty and growth deceleration in major trading partners are taking a toll on manufacturing, investment, trade, and growth,” Changyong Rhee, director of the IMF’s Asia and Pacific department, said during a news conference at the IMF and World Bank fall meetings.
“Risks are skewed to the downside,” he said, calling on policymakers in the region to focus on near-term fiscal and monetary policy steps to spur growth.
“The intensification in trade tensions between the US and China could further weigh on confidence and financial markets, thereby weakening trade, investment and growth,” he said.
A faster-than-expected slowdown in China’s economic growth could also generate negative spillovers in the region, as many Asian countries have supply chains closely tied to China, he added.
The IMF slashed China’s growth forecast to 6.1 percent for this year and 5.8 percent for 2020, pointing to the impact from the trade conflict and tighter regulation to address excess debt.