Saudi Arabia is reportedly looking to purchase Boeing Co (NYSE:BA, ETR:BCO) or Airbus Group (EPA:AIR) jets for a brand new cargo airline to support flag carrier Saudia and recently launched Riyadh Air.
According to Bloomberg, Boeing 777s and Airbus 350s are being eyed for a potential order, leaving Rolls-Royce Holdings PLC (LSE:RR.) as a candidate to power the aircraft.
Airbus’ long-haul A350 exclusively runs on Rolls-Royce Trent XWB turbofan engines, while the British manufacturer’s Trent 800 can be used on Boeing’s 777.
Saudi Arabia’s Public Investment Fund is said to be in talks with both Boeing and Airbus over orders for new freighters, though no final decisions have yet been made.
This comes as the country looks to capitalise on growing demand for air cargo, with such flights up 14% in June, according to the International Air Transport Association, marking the seventh consecutive month of double-digit growth.
Saudi’s new airline would support ongoing cargo operations at Saudia and Riyadh, which was launched in early 2023.
Bloomberg reported the plans could also see Saudia transferred into public hands.
Was Saudi to firm up the orders, it would come as Boeing and Airbus grapple to fulfil record backlogs after demand for new jets has spiked after the pandemic.