Saudia weighs fleet expansion with talks on 150 Airbus A320s

Saudi Arabia’s flagship carrier is considering a large expansion of its fleet with the addition of as many as 150 narrow-body aircraft and is holding preliminary talks with Airbus SE about the top-selling A320 model, people familiar with the matter said.

Talks between Saudia and Airbus aren’t likely to be completed during the Dubai Airshow underway this week and could still fall apart, the people said, asking not to be identified discussing ongoing negotiations. An order of that caliber would be the largest in Saudia’s history.

The state-owned airline is being repositioned to focus on religious pilgrimages as Crown Prince Mohammed bin Salman reshapes the kingdom’s aviation market. Startup carrier Riyadh Air will focus on tourism as bin Salman aims to turn Saudi Arabia into a destination for visitors. The new airline is near a deal for Boeing Co. narrow-bodies, Bloomberg reported earlier.

Saudia has nearly wrapped up discussions on a 150-plane order, Saudia fleet executive Saleh Eid told a local outlet on Monday, without identifying the manufacturer. The size has been expanded from the original target of 100 planes, the people said.

A Saudia spokesperson said the airline is currently considering multiple proposals.

Representatives for Airbus declined to comment.