Re: Saudi MD-11's ???

Date:         29 Nov 97 03:24:34 
From:         malc@mci2000.com (Malcolm Weir)
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On 23 Nov 97 03:04:03 , Peter Ivakitsch <rollers@interlog.com> caused to
appear as if it was written:

>Can anyone advise as to the delay in delivery of Saudia Arabian
>Airline's MD-11's.  A good friend of mine who was scheduled to transfer
>from the A-300 to the MD-11 has been told to expect to remain on the
>A-300 and was given no word as to the hold up.  This all comes after he
>and several other crew members were trained and prepared to take
>delivery of the MD-11.  The silence from SV is very strange as last we
>know the 4 MD-11's are sitting in Long Beach ready for delivery.  Any
>information would be greatly appreciated.

Believe it or not, the problem is that Saudia is having trouble financing
them!

I believe that the original plan called for Saudia to obtain normal
commercial funding, but foreign banks became a little leery about Saudi
Arabia's current debt structure, possible unrest in the neighborhood, etc.
So the finance rates offered were not economically viable for the airline.

The current plan is to apparently to obtain domestic Saudi financing.  All
reports indicate that the delay has more to do with sorting out some
complicated financing rather than any kind of attack of cold feet at the
aircraft themselves.

The aircraft currently effected are all MD-11F's.  I believe, though, that
there are some twenty-nine MD90's involved in the same deal, too.  The
airline also has/had five 747-400's and twenty-three 777-200's on order, so
it is possible that there are some negotiations going on with Boeing
regarding some late changes (specifically, would Boeing want to build those
MD90's if they could deliver something else instead?).

Malc.