State-owned low-cost Saudi Arabian airlines flyadeal will not go ahead with a provisional order worth $5.9 billion for Boeing 737 MAX aircraft, media reports said. Instead, it announced a significant expansion of its fleet with  Airbus A320, it said in a statement. 

“This order will result in flyadeal operating an all-Airbus A320 fleet in the future,” the statement  said. This decision is in response to ensure robust growth in customer demand in domestic, regional, and international routes. The agreement was for a total of 100 aircraft. The allocation of the new aircraft is from the previous agreement with which Saudi Arabian Airlines Corporation signed during the Paris Air Show in June this year. 

The press release said that the additional aircraft is part of the Saudi Arabian Airlines Corporation’s dual strategy where flyadeal’s focus is on catering to customers seeking low fares. The new Airbus aircraft will be delivered to flyadeal from 2021 according to the new official press release. “We understand that flyadeal will not finalise its commitment to the 737 MAX at this time given the airline’s schedule requirements,” a Boeing spokesperson told Reuters. 

Boeing loses a big order with flyadeal’s change in decision. According to Boeing, the deal included an additional option to purchase 20 more 737 Max aircraft worth $5.9 billion at list prices. Boeing’s market value fell after the two MAX aircraft crashed in Ethiopia and in Indonesia last October. flyadeal was launched on the Kingdom’s national day two years ago. It travels only to domestic destinations within the Kingdom.