CONFIRMATION OF the long-awaited Saudi Arabian Airlines 61-airliner order has emerged amid questions over the financial arrangements for the multi-billion dollar deal.
Saudi defence and aviation minister Prince Sultan bin Abdul Aziz announced the imminent purchase of the new fleet at a Saudia 50th anniversary dinner in Jeddah on 18 June. As predicted, around 70% of the order value goes to Boeing, which will supply 23 777-200s and five 747-400s. Based on the first aircraft being handed over in 1997, Boeing estimates its share of the order to be worth $5.2 billion in delivery-year dollars.
Financial arrangements, meanwhile, remain unclear. The US Exim bank, which made the initial financing offer in August 1993, says that it had not received any "requirement for a final commitment from either Saudia or the Saudi Government". Failure of the Saudis to foreclose on the initial agreement with Exim has led to speculation that the Saudi Government itself may be prepared to guarantee the loan.
McDonnell Douglas (MDC) will not officially say anything about its share, worth an estimated $2.5 billion, until the "...agreements are formally signed". According to the Prince, who is also chairman of Saudia, the MDC share includes 29 MD-90s and four MD-11F freighters. The MD-90s will feature a new glass cockpit, based on a five flat-panel-display layout developed by Honeywell. The MD-11s, similarly, are expected to be fitted with six flat-panel displays and Honeywell's new VIA 2000 integrated avionics system.
On the back of the expected official signing of the Saudia deal, MDC is also preparing to confirm the sale of two MD-11s for the Saudi Royal Flight. These were delivered almost two years ago, but have been in storage at Mojave, California, ever since. The aircraft, is expected to be reactivated, shortly. Further MD-11s for the Royal Saudi Air Force, is expected to be added to the deal.
Source: Flight International