Administration Lauds Boeing Jet Sale to Saudis

March 14, 2023 by Dan McCue
Administration Lauds Boeing Jet Sale to Saudis
(Boeing photo)

WASHINGTON — Saudi Arabia’s nearly $37 billion purchase of new Boeing passenger jets is yet another sign of the United States’ rebirth as a global manufacturing leader, Biden administration officials declared Tuesday.

Their enthusiastic assessment came just moments after Boeing announced that Saudi Arabia’s sovereign-wealth fund, the Public Investment Fund, intends to purchase 121 of its 787 Dreamliner passenger jets.

Under the terms of the agreements, Saudi Arabian Airlines, the national flag-carrier, will grow its long-haul passenger fleet with the purchase of 39 Dreamliners while holding an option to buy 10 more.

The remaining passenger jets are earmarked for Riyadh Air, a new state-run enterprise that Crown Prince Mohammed bin Salman unveiled on Sunday.

This agreement is part of Saudi Arabia’s wider strategic plan to transform the country into a global aviation hub, much as neighboring Dubai and Qatar are today. 

In December the country announced that it is building what will eventually be one of the world’s largest airports in its capital, Riyadh.

When completed, King Salman International Airport is expected to encompass some 22 square miles and have no fewer than six parallel runways.

The passenger jet order, which includes both the 787-9 and 787-10 models (the difference being size and passenger capacity), is the fifth-largest commercial order, by value, in Boeing’s history.

Just last month Boeing completed the second-largest commercial transaction in its history by sealing a deal to provide over 200 aircraft to support the expansion of Air India’s commercial fleet.

According to the White House, the Saudi and Air India purchases will support over 1 million U.S. jobs in the aerospace supply chain across 44 states.  

The most recent deals with Saudi Arabia alone support more than 140,000 American jobs at over 300 Boeing suppliers across 38 states, many of which do not require a four-year college degree, officials said.

“We are particularly pleased that Boeing was able to finally conclude these deals with Saudi Arabia after years of discussions, and intensive negotiations over recent months,” White House Press Secretary Karine Jean-Pierre said in a written statement.

“Today’s announcement ensures that Boeing and General Electric (which is providing new, state-of-the-art engines for the aircraft) will anchor Saudi Arabia’s new international airline together with support for a new international airport,” she said.  

“This partnership is another milestone in eight decades of cooperation between Saudi Arabia and American industry,”  Jean-Pierre added.

Commerce Secretary Gina Raimondo also commented on the deal, calling it “a clear win for American manufacturers and workers.”

“Moreover, the Kingdom of Saudi Arabia has selected GE Aerospace’s GEnx engine to power the aircraft, providing billions more in U.S. exports and supporting good-paying American jobs,” she said. “Agreements like the one announced today underscore the strength of America’s private sector, workers and technology in the competitive global landscape.”

Raimondo noted that it was President Franklin D. Roosevelt who provided King Abdulaziz al Saud with Saudi Arabia’s first airplane, a DC-3 Dakota, in 1945.

“Today’s announcement is a fitting tribute to an economic partnership between our two countries,” she said.

The purchase comes at a time when Saudi Arabia has been seen as testing the historically close ties with the U.S. to which Raimondo made reference. Just this past Friday it was announced that Saudi Arabia and Iran agreed to resume diplomatic ties in a deal mediated by China — a deal some fear threatens U.S. primacy in the region.

Jean-Pierre made no mention of that agreement in offering the White House response to the Boeing deal, saying only, “Our administration looks forward to working with Saudi Arabia and all partners in the Middle East to support a more prosperous, secure, and integrated region, which ultimately benefits the American people.”

Dan can be reached at [email protected] and at https://twitter.com/DanMcCue

A+
a-
  • Boeing
  • manufacturing
  • Saudi Arabia
  • In The News

    Health

    Voting

    Manufacturing

    Wall Street Points to Gains as Global Markets Rebound

    World shares and U.S. futures advanced Tuesday, led by gains in Tokyo where the Nikkei 225 shot up just over... Read More

    World shares and U.S. futures advanced Tuesday, led by gains in Tokyo where the Nikkei 225 shot up just over 6% as markets settled after the shocks from President Donald Trump ’s tariff hikes. Japan's Nikkei newspaper reported Tuesday that U.S. Treasury Secretary Scott Bessent would lead trade... Read More

    US Electric Vehicle Industry Is Collateral Damage in Trump's Escalating Trade War

    DETROIT (AP) — President Donald Trump's tariff blitz has sent shock waves throughout every aspect of the global economy, including the auto... Read More

    DETROIT (AP) — President Donald Trump's tariff blitz has sent shock waves throughout every aspect of the global economy, including the auto sector, where multi-billion-dollar plans to electrify in the United States are especially at risk. Here's what consumers should know about the impact of tariffs on electric... Read More

    March 3, 2025
    by Dan McCue
    Trump Says Stiff Tariffs on Canada, Mexico to Go Into Effect Tuesday

    WASHINGTON — President Donald Trump said Monday the 25% tariffs he’s been dangling over the heads of officials in Canada... Read More

    WASHINGTON — President Donald Trump said Monday the 25% tariffs he’s been dangling over the heads of officials in Canada and Mexico like the sword of Damocles for more than a month will go into effect on Tuesday. “The tariffs, they’re all set. They go into... Read More

    Japan's Toyota Announces EV and Battery Push in China and US, as Its Quarterly Profit Surges

    TOKYO (AP) — Toyota is developing and making electric vehicles and EV batteries in China, the Japanese automaker said Wednesday,... Read More

    TOKYO (AP) — Toyota is developing and making electric vehicles and EV batteries in China, the Japanese automaker said Wednesday, under a new partnership with the Shanghai government. Toyota Motor Corp. also announced it will start producing batteries for EVs, hybrids and plug-ins at a new $14... Read More

    A Rival Bid for US Steel Is Emerging as the US Extends Deadline on Nippon's Bid Blocked by Biden

    HARRISBURG, Pa. (AP) — The bid by Japan's Nippon Steel to buy U.S. Steel may have a new lease on... Read More

    HARRISBURG, Pa. (AP) — The bid by Japan's Nippon Steel to buy U.S. Steel may have a new lease on life, even as the potential for a new bid for the storied Pittsburgh steelmaker began to emerge Monday. Lourenco Goncalves, the CEO of Ohio-based steelmaker Cleveland... Read More

    Biden Rejects Nippon Steel's Proposed Deal to Acquire US Steel

    WASHINGTON (AP) — President Joe Biden has rejected the nearly $15 billion proposed deal for Nippon Steel of Japan to... Read More

    WASHINGTON (AP) — President Joe Biden has rejected the nearly $15 billion proposed deal for Nippon Steel of Japan to purchase Pittsburgh-based U.S. Steel — affirming his earlier vow to block the acquisition of Steeltown USA’s most storied steel company. “We need major U.S. companies representing... Read More

    News From The Well
    scroll top