Saudi Arabian Airlines places $2.4bn Boeing order

Saudi Arabian Airlines has announced an order for eight Boeing 777-300ER aircraft worth $2.4bn at current list prices.

The announcement was made on Tuesday as Boeing delivered its first two 777 planes to the Saudi national carrier.

"The new order reiterates our confidence in the 777 which has justifiably earned a reputation for its improved fuel efficiency, reliability and passenger comfort," said Khaled Al-Mulhim, director general of Saudi Arabian Airlines (Saudia) in a statement.

"With the ongoing growth of business and industry in Saudi Arabia, demand in domestic, regional and international travel is also increasing rapidly and the 777-300ER will play a significant role in our long-term strategy growth to expand and modernise our fleet with newer, more fuel-efficient airplanes."

Boeing said its partnership with Saudi Arabia dates back to 1945 when President Franklin D Roosevelt presented a DC-3 Dakota airplane to King Abdulaziz Al-Saud.

Saudi Arabian Airlines took delivery of its first 777, a 777-200ER, in December 1997 and currently owns and operates 23 Boeing 777-200ERs.

"We are grateful for the confidence Saudi Arabian Airlines has placed in the 777 and in Boeing," said Jim Albaugh, president and CEO, Boeing Commercial Airplanes.

"We will continue working closely with the airline to provide the best commercial aircraft and services to support its plans for growth, and we look forward to strengthening our partnership with Saudi Arabia by supporting the kingdom's goals for technology development and education."

Saudi Arabian Airlines said last August it plans to obtain loans from local banks to finance the purchase of Airbus and Boeing aircraft.

The carrier said it has also approached the government for funds.

Saudi Arabian Airlines said in July it had seen a 14 percent rise in passenger traffic in the first half of 2011, with the domestic market accounting for 65 percent of total flights.

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