Talks on Plane Sale to Saudis ‘Productive’

U.S. Transportation Secretary Federico Pena said Sunday that he had “very productive” talks with King Fahd of Saudi Arabia on a possible sale of American civilian aircraft worth $6 billion.

The carrier Saudia’s plans to renew its fleet with some 60 aircraft has placed the four-nation European consortium Airbus Industrie and American firms Boeing Co. and McDonnell Douglas Corp. in close competition for the deal.

Pena, who met the king for 2 1/2 hours Saturday, said his talks with the Saudi monarch were “very productive and delightful . . . and we will simply wait until the kingdom makes an official decision.”

“All I can tell you formally is that the kingdom of Saudi Arabia will make its decision when it decides it is appropriate,” he added.

Pena was speaking at a news conference in Riyadh at the end of his visit. The U.S. embassy there sent Reuters a transcript of the conference.

During his visit, Pena signed Washington’s first civil aviation accord with Saudi Arabia, allowing U.S. airlines eight passenger and six cargo flights a week to Saudi Arabia and Saudia the same number to the United States.

The accord also grants Saudia the right to fly to New York, Washington and Florida while American carriers can fly to three destinations in the kingdom.

Saudia currently flies to the United States, but no American airline has scheduled flights to Saudi Arabia.

Pena said he discussed Riyadh buying buses and transportation technology as well as aircraft.

“All of those issues have been discussed. They are important for our companies in the United States,” he said.

Asked if Washington would accept sharing the Saudia deal with Airbus, Pena said: “I can’t speak to that question. Only the U.S. companies involved can speak to that question.”