Saudi Arabia’s Flynas in talks with Airbus about placing order

Saudi Arabian low-cost carrier Flynas is in talks for an Airbus SE jet order, according to people familiar with the matter, as airlines in the country bulk up operations to better compete with regional rivals.

The carrier may announce an accord with the European planemaker as soon as the Paris Air Show starting early next week, said the people, asking not to be identified as discussions are confidential. The carrier said previously that it was considering establishing local units in two additional countries as part of a plan to become the Middle East’s largest discount carrier. 

The budget specialist operates an all-Airbus fleet and most recently ordered a mix of A320neo and A321XLR aircraft. The company also has a few Airbus A330 widebody units used predominantly for the Hajj pilgrimage. 

Talks between the airline and the manufacturer continue and may not necessarily result in an accord anytime soon, the people said. Airbus declined to comment on a potential order from Flynas, as did the airline.

Last year, Flynas said it was planning to expand its existing jet orders to 250 aircraft. 

Saudi Arabia is pumping money into the aviation industry as part of a push to make the economy less dependent on oil and become one of the world’s top tourism destinations by 2030. Flynas, which began flying as Nas Air in 2007, is partly owned by Kingdom Holding Co., the investment vehicle of Saudi billionaire Prince Alwaleed Bin Talal.