19 hours ago
- Business
- Business Recorder
Saudi leasing firm AviLease orders 40 Airbus jets
PARIS: Saudi leasing company AviLease placed a firm order for 30 Airbus single-aisle jets and 10 A350 freighters in its first direct deal with the European planemaker, as Saudi Arabia's aviation ambitions kicked off the Paris Airshow on Monday.
The three-year-old company, a unit of Saudi Arabia's Public Investment Fund, also took out options that could eventually bring the total purchase to 77 jets, AviLease CEO Ted O'Byrne told a news conference.
Reuters had previously reported that AviLease was close to placing the order with Airbus.
Saudi Arabia's newest airline, Riyadh Air, which is also owned by PIF, also signed an order for 25 A350-1000s at the opening of the world's largest aviation expo.
The air show deals mark a partial balancing of suppliers after Gulf carriers spent heavily on Boeing jets during a recent trip to the region by U.S. President Donald Trump.
Saudi Arabia's aviation sector is expanding as the kingdom invests billions of dollars in its Vision 2030 plan to diversify its economy away from fossil fuels and boost its private sector.
The order for freighters comes in the face of global trade tensions, with existing models coming up for replacement and some projects to convert passenger planes waiting for approval.
'There is a big potential growth in the Saudi market and Saudi aviation strategy calls for more than doubling cargo and logistics infrastructure in the kingdom,' O'Byrne said.
A large Saudi delegation headed by the country's transport minister attended the show.
AviLease owns and manages 200 aircraft and has set out ambitions to become one of the industry's top global lessors. It agreed in 2023 to buy the jet leasing arm of Standard Chartered for $3.6 billion.
It said earlier this year it planned to increase its balance sheet from around $8 billion to around $20 billion by 2030, through acquisitions and buying planes from manufacturers or the market.
