Boeing hopes to strike mega deal with Saudi Arabia

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It looks like Boeing (BA) has made a great deal with Saudi Arabia.

The aerospace giant has secured orders for up to 121 787s from two Saudi Arabian airlines – state-owned Saudi Arabian Airlines and new national player Riyadh Air – a source familiar with the matter tells Yahoo Finance. A total of 78 aircraft are considered firm orders, while there are options to buy 43 more, the source said.

Based on the 787’s list price of about $338 million, the deal could be worth an estimated $40 billion.

The details could be finalized on Tuesday.

Boeing shares rose about 1% in pre-market trading. Shares are up 6.8% year to date, outpacing the S&P 500’s 0.4% gain.

Riyadh Air was formally announced a week ago by Saudi Arabia’s Crown Prince Mohammed bin Salman in an effort to provide regional transport and compete with other international travel hubs.

Financial backing for Riyadh Air will come from the Saudi Arabian Public Investment Fund (known as the PIF), which has made a name for itself with startups ranging from the LIV Golf to EV maker Lucid.

Riyadh Air is expected to serve more than 100 destinations worldwide by 2030.

Tony Douglas – who left Etihad Airways as CEO last October – was named Riyadh Air’s first CEO.

FILE – A Boeing 787 Dreamliner lands at Le Bourget airport, east of Paris, following its debut at the 49th Paris Air Show at the airport June 21, 2011. (AP Photo/Francois Mori, File)

This is breaking news and will be updated.

Brian Sozzi is the executive editor of Yahoo Finance. Follow Sozy on Twitter @BrianSozzi and on LinkedIn,

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