Airbus - large order from Saudi Airlines

Airbus Group Receives Order of 50 Aircraft From Saudi Airlines

Saudi Arabian Airlines signs a contract with Airbus to acquire 30 A320 and 20 A330 commercial aircraft through International Airfinance Corporation

Airbus Group recently announced that it signed a contract with Saudi Arabian Airlines to deliver 50 aircraft for a total value of $8.2 billion based on the list price. Airbus was in talks with Saudi Airlines since the beginning of the Paris Air Show; the deal has now been finalized.

According to the contract, Airbus will be supplying 30 A320neo aircraft and 20 A330-300 aircraft to Saudi Arabian Airlines. The contract will certainly help Airbus in taking a lead from its rival, Boeing Co (NYSE:BA). However, Saudi Arabian Airlines will acquire the aircraft through Islamic financing. The $8.2 billion deal makes it the largest deal in the aviation industry made through Islamic financing.

Yesterday, Airbus also announced that it is in talks with China to book an order of 50-70 A330-300 commercial aircraft, but the company has not yet finalized a contract. It is believed that the contract will be based on the list price and will be valued at approximately $16 billion.