The Saudi Arabian Airlines Corporation (Saudia) has signed a financing agreement with 6 local banks worth SR11.2 billion ($3 billion), the largest in the history of the kingdom's aviation sector, to expand its aircraft fleet.

 

The agreement was signed in Jeddah in the presence of Minister of Transport and Chairman of the Board of Directors of the Saudi Arabian Airlines Corporation Eng Saleh bin Nasser Al-Jasser; Director General of the Saudi Arabian Airlines Corporation Eng Ibrahim bin Abdulrahman Al-Omar and the representatives of the six banks which are Al Rajhi Bank, the Saudi British Bank (SABB), the Arab National Bank (ANB), Samba Financial Group, Bank AlJazira, Bank Albilad and HSBC, which is the financial advisor for the corporation and the investment agent for the banks in this deal, a Saudi Press Agency report said.

 

The agreement aims to finance the needs of the corporation to mid-2024, within the framework of financing part of the deals to purchase 73 aircraft from Airbus and Boeing, which were previously announced, including: 20 aircraft of A321neo, 15 A321XLR and eight 787-10 for the Saudi Arabian Airlines as well as 30 A320neo for flyadeal. The corporation has received five 787-10 aircraft from this deal so far.

 

The agreement embodies Saudia's commitment to promote tourism as well as Hajj and Umrah sectors in line with the Saudi Vision 2030 objectives to attract 100 million tourists and 30 million Umrah performers annually.