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FINANCIAL NEWS
Saudi’s airforce awards $380m contract
08 Dec 2010
(MENAFN) The Royal Saudi Airforce (RSAF) revealed that it has awarded Alsalam Aircraft Company, the Riyadh-based aviation products company, a $380 million five-year contract to provide maintenance support for its F-15 fighter jets fleet, Arabian Business reported.
Under the contract, Alsalam will provide Saudi Arabia with self-sufficiency in the aircraft maintenance field, and offer services to both commercial and military aircraft. It was also appointed as the prime contractor on the RSAF�s attack helicopter fleet.
As a result of heavy Saudi investment in new military aircraft, Alsalam’s pipeline of work is expected to grow considerably in the next 20 years or so, whereas the Kingdom could buy as much as $60 billion worth of arms from the US in deals that are currently being considered by Congress.
It is worth noting that Alsalam is 50 percent owned by Boeing, 25 percent by Saudi Arabian Airlines, and the remaining shares are owned by the Saudi Advanced Industries Company and the Gulf Investment Company with 10 percent each, and the National Industrialization Company with 5 percent.
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