A public investment fund in Saudi Arabia is close to striking a deal with Boeing for commercial jets. According to people familiar with the matter, a new airline would order several jets, including the wide-body 787 Dreamliner for long-haul international travel.
In today’s BNN News, the sovereign wealth fund expects to announce a deal worth $35 billion for Boeing jets on Sunday when it officially launches a new national airline. The order could include wide-body jets for international travel.
Airbus SE and Boeing are in a race for new aircraft order
Airbus SE and Boeing have been lobbying Saudi Arabia for several months to bag an order for planes. The new order expects to generate employment for several thousand in the US. According to people familiar with the matter, the order could include more than 100 airplanes. The national airline could place a confirmed order for some planes initially with an option to buy more at a later date.
In a bid to diversify from the oil business, Saudi Arabia announced plans to unveil a new national airline, according to a briefing, in 2021. According to a communiqué from officials in the Kingdom, the creation of new airlines would help it become a hub for global business. It will also help the nation compete with its peers in the Gulf.
Boeing receives a large order from Air India Ltd
The new deal with Boeing goes against easing tensions between the Kingdom and the Biden administration. If the deal goes through, it could be another large order for Boeing in the recent period. The airplane maker, Boeing, and Airbus, a European rival, bagged a large order for 470 jets from Air India Ltd. in February 2023. Emmanuel Macron, the French President, Narendra Modi, the Indian Prime Minister, and Joe Biden, the US President, were engaged in announcing the aircraft deal in February.
Boeing received an order for new 220 planes in February from Air India Ltd. It marked the biggest order for commercial jets in Boeing’s history, valued at $85 billion. The order is exclusive of customary discounts. According to a December 2022 communiqué, Boeing also expects to receive an order for 100 wide-body jets (787 Dreamliners) from United Airlines. The order will also include narrow-body jets.
DGCA Allows Air India Pilots to fly both Boeing 777s and 787s
In the latest world news, Air India is pleased to announce the approval of the DGCA (Directorate General of Civil Aviation) for its pilots to fly both 777s and 787s of Boeing amid the shortage of pilots. The approval allows the airline to use a set of pilots to operate both models and improve its revenues.
After the merger of Air India with Air Asia and Vistara, the airline currently has a pilot strength of 3,000. It needs over 7,000 pilots after receiving 470 aircraft from Boeing and Airbus. A lack of pilots has caused cancellations or delays of flights by Air India. In some instances, passengers were stranded at the airports for over 13 hours. DGCA approval allows Air India to streamline its operations.