Flynas sign deal with Airbus worth 8.6 billion us dollars

Flynas, a Saudi Arabian budget airline signed a deal with French plane maker Airbus to purchase 80 new A-320 planes in next ten years. The deal also included the possibility of purchasing 40 small sized aero planes. This deal is worth 8.6 billion US dollars.

The Flynas wants to cater the needs of the growing domestic passengers. At present Flynas has more than six million passengers annually. Flynas is focusing mainly on the domestic traffic in Saudi Arabia and its neighbouring countries.

Saudi Arabia wants to increase the numbers of Muslim pilgrimage to the holly cities of Makkah and Medina. Saudi Arabian government also wants to increase the regional tourism into the country to boost its tourism sector. The Saudi government also wants to privatise its airports and to modernise transport infrastructure to become regional transport hub with links to all neighbouring countries.

Saudi Arabian Airlines is the largest and most dominating airline in Saudi Arabia. Saudi airlines also wants to expand and looking to increase its fleet to 200 planes in 2020. Saudi airlines flew more than 29 million passengers in 2015 and already placed order for 50 more airbus planes to use it for domestic flights.

The Saudi aviation market is becoming more competitive with the entry of two new domestic airlines, Nesma and Saudi Gulf.