#Saudi Wealth Fund Said to Be in Talks to Buy National Airline - Bloomberg

Saudi Wealth Fund Said to Be in Talks to Buy National Airline - Bloomberg

Saudi Arabia’s sovereign wealth fund is in early talks to acquire the kingdom’s flagship carrier as it looks to pour billions of dollars into turning the country into a tourism hotspot.

The Public Investment Fund is considering a deal that would see it add the 80-year old Saudia to its growing portfolio of aviation assets as soon as next year, according to people familiar with the matter, who asked not to be identified as the information is private.

The PIF would be taking over ownership of the airline from the government with a view to improving efficiency and profitability, the people said. The carrier could then be privatized or merged with Riyadh Air, which the wealth fund is currently setting up, they said.

It’s unclear how Saudia would be valued by the PIF, which has in the past received assets from the government without having to pay in order to prepare them for privatization. The carrier has a fleet of over 142 aircraft and flies to more than 90 destinations around the world.

No final decisions have been made. Talks are still at an early stage and the plan may be delayed or abandoned, the people said.