Boeing inks mega deal with Saudi Arabia

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Boeing (BA) has made a big deal with Saudi Arabia.

As Yahoo Finance first reported on Tuesday, the aerospace giant has secured orders for up to 121,787 from Saudi Arabia’s two airlines — state-owned Saudi Arabian Airlines and new national player Riyadh Air. A total of 78 aircraft are considered firm orders, while there are options to buy 43 more.

Of the 121 orders, 72 are from Riyadh Air.

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

“It’s important,” Boeing CEO David Calhoun told Yahoo Finance.

Boeing shares rose nearly 2% in early trading. Shares are up 7% 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 Saudi Arabia’s Public Investment Fund (known as the PIF), which has backed startups ranging from 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.

“Today this order for us [from Boeing] “This is the first major milestone that shows everyone the scale of the ambition,” Douglas told Yahoo Finance.

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

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

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