Saudi Arabia’s Public Investment Fund is nearing a multi-billion-dollar deal for Boeing (BA) commercial jets for the fleet of a brand-new national airline, the Wall Street Journal reported on Sunday. Boeing stock dipped in premarket trading Monday.
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The aircraft order is estimated at $35 billion, the WSJ report said, citing people familiar with the matter. It could involve as many as 100 airplanes or more. Aircraft deals can include a mix of confirmed orders and options to buy more later.
The deal includes wide-body jets often used in long international flights, it added. Earlier Sunday, the Saudi government announced a new national airline, Riyadh Air.
The Saudi kingdom is looking to transform into a transport and tourism hub.
Boeing and Airbus (EADSY) had been competing for the Saudi deal for months, sources told the WSJ. The Boeing jet deal is expected to create or support tens of thousands of jobs in the U.S., they added.
BA Stock
Shares of Boeing rose nearly 1% in early trade, then backtracked to a 0.4% decline in Monday’s premarket action. Boeing stock undercut the 50-day moving average last Thursday after a four-day slide.
Airbus stock was not active early Monday.
The WSJ report said the Saudi sovereign-wealth fund is expected to announce the deal “later Sunday” amid the official launch of the airline. However, official word was still pending Monday before the U.S. stock market open.
In mid February, Boeing agreed to sell more than 200 aircraft to Air India in a $34 billion deal, seen as one of the largest in the planemaker’s history.
A Saudi deal with Boeing would come amid signs of easing tension between the Biden administration and the Saudi government.
The White House and the Saudi government didn’t immediately respond to the Journal’s requests for comment.
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Source: https://www.investors.com/news/ba-stock-rises-boeing-35-billion-jet-deal-new-saudi-airline/?src=A00220&yptr=yahoo