Airbus inks $2b deal with Riyadh company

Dubai: European aircraft manufacturer Airbus yesterday signed a firm sales contract with Riyadh-based National Air Services (NAS) for 20 single-aisle A320 aircraft at a cost of approximately $2 billion.

The order by NAS for its budget airline arm Nasair follows a purchase agreement five months ago at the International Paris Airshow. The agreement also includes 18 purchase rights.

Speaking at a press conference, Taher Agueel, president, NAS, said delivery of the aircraft will begin in 2012.

Nasair is the first budget carrier in Saudi Arabia and began services in February 2007. It now flies to 21 destinations in the kingdom and expects to fly international flights from early 2008. NAS was awarded the first commercial licence to fly domestic routes within Saudi Arabia in December 2006.

Agueel said NAS will finance the Airbus order, which represents half of a total $4 billion planned acquisition of new aircraft, through a variety of domestic and international institutions.

The new Airbus aircraft will be deployed to Nasair, the company said. NAS currently manages a fleet of 47 aircraft, six of which are Airbus A320s.

The latest order, coupled with NAS's other commitment for 60 corporate jests signed earlier this year, will grow the fleet to more than 127 planes.