Business Agreements Strengthen Boeing, Saudi Arabia Partnership

May 21, 2017

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Several defense and commercial agreements announced yesterday will further strengthen Boeing’s partnership with Saudi Arabia, create or sustain thousands of jobs in both the United States and Saudi Arabia, and enhance national security in the region.

U.S. President Donald Trump and Secretary of State Rex Tillerson were joined by King Salman bin Abdul-Aziz Al Saud, Crown Prince Mohammed bin Naif Al Saud and Deputy Crown Prince Mohammad bin Salman Al Saud at a signing ceremony that included Boeing products and services. Among the announcements:

• Agreements to purchase Chinook helicopters and associated support services as well as guided weapon systems.
• Saudi Arabia’s intent to order P-8 maritime, patrol and reconnaissance aircraft, which are based on the Boeing 737 commercial airplane.
• A joint venture with the Kingdom to provide sustainment services for a wide range of military platforms. The agreement also supports Saudi Arabia’s efforts to grow its indigenous aerospace industry and ecosystem through its Vision 2030 initiative.
• A commercial registration certificate for the Saudi Rotorcraft Support Company, a newly formed joint venture between Boeing, Alsalam Aerospace Industries and Saudia Aerospace Engineering Industries with bases in both Riyadh and Jeddah that will provide support for both military and commercial helicopters.
• An agreement between Boeing and SaudiGulf Airlines to negotiate the sale of up to 16 widebody airplanes.

“These announcements reaffirm our commitment to the economic growth, prosperity and national security of both Saudi Arabia and the United States, helping to create or sustain thousands of jobs in our two countries,” said Boeing Chairman, President and CEO Dennis Muilenburg, who also participated in the Saudi-U.S. CEO Forum.

“Our decades-long partnership with the Kingdom began in 1945 when President Roosevelt presented a DC-3 to King Abdul Aziz Al Saud, launching commercial air travel in the region. We welcome the opportunity to continue that support. I appreciate the efforts of King Salman, President Trump and his administration to support American manufacturers as we seek to grow at home and around the world,” he added.

Source : The Boeing Company (NYSE: BA)