Saudi’s flyadeal signs $5.9bn deal for up to 50 Boeing 737 MAX jets

Saudi low-cost airline flyadeal has signed a deal with Boeing to buy up to 50 737 MAX jets, it was announced on Monday.

The airline committed to ordering 30 airplanes with options for 20 more in a deal that would be valued at up to $5.9bn at list prices, a statement said.

The deal is subject to both sides concluding final terms and conditions and a purchase agreement.

Flyadeal, a subsidiary of Saudi Arabian Airlines, offers low-cost flights within Saudi Arabia and currently operates a fleet of eight Airbus A320s leased from Dubai Aerospace Enterprise.

Over the past year, the airline has conducted an evaluation process for 50 narrowbody airplanes to support domestic growth and potential international expansion.

It was due to decide on the order for Airbus A320neos or Boeing 737 MAXs in the second quarter of this year, but delayed the decision to further assess the performance of the revamped models.

The airline says it has now selected the 737 MAX for the future, according to the statement.

It plans to add around 10 aircraft a year to its fleet from 2020, its CEO Con Korfiatis told Reuters last month.

It is also planning to expand from 10 to 14 domestic destinations in 2019 and also launch its first international flight next year to either Egypt, Turkey, or to other GCC countries.

Korfiatis also confirmed that the airline, which launched in September 2017, has carried more than two million passengers and expects to carry more than 3.5 million in 2019.

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