Saudia in talks with Airbus and Boeing over plane orders

Saudia in talks with Airbus and Boeing over plane orders

RIYADH - Saudi Arabian Airlines (Saudia) is in talks with planemakers Airbus SE and Boeing Co on orders for itself and a new carrier the kingdom plans to launch, the state-owned airline's chief executive said on Tuesday.

The talks are for aircraft for both airlines as they have the "same shareholder", Ibrahim Koshy told Reuters on the sidelines of Saudi Arabia's FII investment conference.

Reuters reported on Monday that Saudi Arabia's wealth fund was in advanced negotiations to order almost 40 A350s from Airbus, with Boeing also lobbying for a slice of the kingdom's aviation expansion despite a chill in U.S.-Saudi relations.

Several analysts believe an order could be split between the two plane giants.

Asked on Tuesday whether potential orders were for the new airline or Saudia, Koshy said "both".

Provisionally named RIA, the new airline will be based in the capital Riyadh, while state airline Saudia will be based out of Jeddah under a transportation strategy that calls for the establishment of two hubs to rival United Arab Emirates and Qatari carriers.

A person familiar with the plans has said the sovereign Public Investment Fund (PIF) has allocated hefty funds to create an ecosystem of cargo and passenger airlines, repair companies and airports.

The PIF