Saudi Arabia is in talks with Airbus to buy 40 A350 aircraft

 Saudi Arabia is in talks to order about 40 A350s from European aircraft maker Airbus to launch a new airline and challenge the heavyweight carriers in the Gulf, aviation industry sources said. Is.

British news agency Roitz, citing sources, said that if confirmed, the purchase by the sovereign Public Investment Fund (PIF) would be worth $12 billion, announced earlier this week, when Riyadh held a major forum. Will host the Future Investment Initiative, can be done.

It is not clear whether Boeing will carry much of the shopping list for the new airline, to be named Ria (RIA), the sources said.

A source familiar with the talks warned that it was "not over yet."

The PIF is in talks to buy about 75 aircraft and another source said the kingdom is leaning towards the Boeing 787.

Neither Airbus nor Boeing responded to the news. The PIF also did not immediately respond to a request from Reuters.

One of the sources said any trade deal would still have to win political approval.

According to two aviation industry sources, the supplier selection is seen as largely political as Saudi Arabia positions itself amid rising tensions with Washington.

The new airline will be based in the capital Riyadh while the state-owned airline will operate from Jeddah.