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Saudi Arabia signs $3 billion contract to increase its aircraft fleet

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The Saudi Arabian Airlines Corporation has agreed with six local banks to fund new planes until the middle of 2024

Saudi Arabian Airlines Corporation has signed an SR11.2 billion ($3 billion) financing agreement with six local banks. According to the Saudi Press Agency, this transaction is the biggest in the history of Saudi Arabia's aviation sector and will be used to support the expansion of the flag carrier's aircraft fleet.

The arrangement intends to fund the company's needs until mid-2024. It is also funding a portion of the previously announced deals to buy 73 aircraft from Airbus and Boeing.

Saudia will receive 20 A321neos, 15 A321XLRs, and eight 787-10s, while Flyadeal will receive 30 A320neos. The company confirms that it has obtained five 787-10 planes from this contract.

The accord was reached in the presence of Saudia director-general Ibrahim bin Abdulrahman Al-Omar, as well as representatives from the Al Rajhi Bank. The Saudi British Bank (SABB), the Arab National Bank (ANB), Samba Financial Group, Bank AlJazira, Bank Albilad, and HSBC, are the investment agents for the banks in this depository.

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