Saudia Airlines’ new $3b finance package will help it capture bigger share of tourism, pilgrimage business

The $3b financing deal signed on March 18 by Saudi Arabian Airlines Corporation will go toward its largest fleet expansion ever, with both Boeing and Airbus as the beneficiaries. The move signals the escalating competition among airlines in the Middle East, with carriers poised for a travel recovery. The agreement, which will partially finance the purchasing of 73 new jets the corporation previously announced, came together under the financial guidance of HSBC Saudi, the airline’s investment agent in this transaction with the six Saudi banks. The financing couldn’t have come at a better time for the airline, which has been aiming to capture a portion of the tourism and pilgrimage market as it recovers from the travel standstill induced by the global pandemic this past year. This agreement will contribute substantially to the country’s long-term economic growth and development, said Transport Minister Saleh bin Nasser Al-Jasser. “Saudi Arabian Airlines Corporation’s fleet expansion will boost tourism and its allied sectors, generate substantial employment opportunities, significantly improve air connectivity, and enhance the flow of foreign investments, in addition to supporting the kingdom’s efforts to diversify the economy by strengthening the key sectors,” he added.<br/>