737 Max's Desert Dance: Boeing Eyes Major Deal with Saudi Start-Up Riyadh Air

  • Boeing Co BA disclosed that it is working on a deal with Riyadh Air to sell 150 of its 737 Max jetliners.
  • The Saudi Arabian startup airline, wholly owned by Saudi Arabia's Public Investment Fund (PIF), is looking to buy around 300-400 single-aisle jets, as per Bloomberg.
  • Based on market-value estimates by consultant Ascend by Cirium, at the current going rate of $53 million for a Max 8, the 150-jet order may be valued at around $8 billion.
  • RelatedBoeing's Battle With 200 - Is The Sky's Limit On The Horizon Or Is There Turbulence Looming Ahead?
  • Boeing declined to comment, and Riyadh Air and PIF didn't respond to the comment request. Airbus SE EADSF can also claim a part of this order, as per the report.
  • It is Boeing's second major deal in the Gulf market, with the earlier being for its larger 787 Dreamliners with Riyadh Air and Saudia for their long-range flights. As part of the transaction, Riyadh Air will be receiving 39 787-9 jets, with options for 33 more. 
  • Earlier this month, Ryanair Holdings PLC RYAAY disclosed ordering 300 new 737-MAX-10 aircraft from Boeing for $40 billion.
  • Last month, Aircraft leasing company Avolon committed to order 40 of Boeing's 737 MAX aircraft
  • Also ReadBoeing's April Delivery Decline Sparks New Deals
  • Price Action: BA shares are closing higher by 0.27% at $204.17 premarket on the last check Tuesday.
  • Photo via Wikimedia Commons
Market News and Data brought to you by Benzinga APIs
Posted In: EquitiesLarge CapNewsMarketsBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!