Riyadh Air, Saudia announce big Boeing 787 order

Riyadh Air, Saudia announce big Boeing 787 order

Riyadh Air and Saudia will purchase 78 Boeing 787 Dreamliner planes under agreements announced Tuesday in a giant order that underlines Saudi Arabia's goal to remake itself as a global aviation hub.

The order -- which could reach as many as 121 planes with options -- constitutes the fifth largest by commercial value in Boeing's history.

The contracts are part of "a blueprint for economic and social reform that is opening Saudi Arabia up to the world," said Reema bint Bandar Al-Saud, Saudi Arabia's ambassador to the United States.

The announcements come after the Saudi Arabia Public Investment Fund launched Riyadh Air just two days ago. Jeddah-based, state-owned Saudia, also known as Saudi Arabian Airlines, dates to 1945 when it received its first jet, a gift from US President Franklin Roosevelt.

Crown Prince Mohammed bin Salman sees aviation as a key component of his "Vision 2030" reform agenda to remake the petroleum-centered country, eyeing a more than tripling of annual traffic to 330 million passengers by the end of the decade.

While Boeing did not provide an estimate of the total value of the order, the White House said it could reach $37 billion.

The White House hailed the announcement, which comes on the heels