Saudia, Airbus sign USD7.7b deal for 50 planes

(MENAFN) Saudi Arabia's state-owned airline signed a deal of USD7.7 billion price listing with Airbus Group SE to purchase 50 planes, according to official statements, Gulf Times reported.

The deal came after issuing two gigantic sukuk (Islamic financing) to help expand Saudia's network of operation. Airbus will first sell the planes to the Aircraft Leasing Islamic Fund, which in turn will lease them to Saudia.

"Islamic financing, particularly sukuk, is the smart way to go. You open up to a whole new world of investors, especially in Saudi and Kuwait," an official commented regarding Saudia's move.