Big aircraft order hinges on privatization at Saudi

Saudi Arabian Airlines is in a long-term expansion plan to acquire up to acquire up to 60 aircraft, but will not move to expand until the sale of the carrier’s associated operations – among them catering -- are completed the first half of this year.

According to a story in the Sunday Business Group, the airline plans to spend US$12 billion on Boeing and Airbus aircraft, in an effort to keep up with fast growing airlines like Emirates and Etihad. The proposed purchase will bring the Saudi fleet to 139 aircraft and will be one of the biggest in 2007.

But next year, Saudi Arabian Airlines plans to pursue a privatization of the entire carrier’s operations. The airline projects a tripling in passenger traffic in the next 10 years. Saudi currently carries about 3.5 million passengers per year.