Saudia to buy SAR 32 billion worth of engines from CFM
Saudi Arabian Airlines (Saudia) has agreed to pay SAR 32 billion to CFM International, an aviation engine manufacturer, to acquire LEAP-A1 engines and service aircraft.
The partnership was announced in conjunction with French President Emmanuel Macron’s visit to the Kingdom, according to the corporation.
Saudia stated that the arrangement will allow it to operate its new fleet of (Airbus) aircraft, which will consist of 35 (A321neo) aircraft arriving in 2022 and 30 (A320neo) aircraft arriving in 2023. A contract for maintenance and services was also included in the arrangement.
Saudia Director-General stated that the business is looking forward to using the (LEAP) engine in the new fleet, which is projected to have a direct beneficial impact on lowering operational costs due to the engine’s high efficiency.
Saudia Director-General went on to say that, under the terms of the agreement, International Engines Company will assist Saudi Aerospace Engineering and Industry Company, a Saudi Group company, in qualifying its cadres for engine maintenance, which includes dismantling, inspecting, assembling, and testing all (LEAP-1A) engines.
According to Bloomberg, the Kingdom of Saudi Arabia is considering building a new airport in Riyadh, which would serve as a base for a new airline that the Public Investment Fund is planning to start. The Kingdom is hoping to see a major rise in visitor arrivals.
Crown Prince Mohammed bin Salman’s $430 billion funds said earlier this year that it aims to invest in aviation to help attract the tourism boom he envisions.
According to Bloomberg, the new airline, which was announced locally earlier this year, would cater to tourists and business travellers, while the present national airline, which is based in Jeddah, will focus on religious tourism.
Over the next nine years, the Country wants to invest SAR 550 billion ($147 billion) in the transportation and logistics industry, with Crown Prince Mohammed bin Salman aiming to turn the kingdom into a worldwide aviation centre.