Boeing and flyadeal have announced the Middle East carrier is growing its fleet with a deal for the 737 MAX.
The airline committed to ordering 30 planes with options for 20 more in a deal that would be valued at up to $5.9 billion at list price.
The deal is subject to both sides concluding final terms and conditions and a purchase agreement.
flyadeal, a subsidiary of Saudi Arabian Airlines, offers affordable flights within Saudi Arabia.
Over the past year, the airline has conducted an evaluation process for 50 narrow body planes to support domestic growth and potential international expansion.
While flyadeal has been operating new Airbus A320s, the airline says it has selected the 737 MAX for the future.
Director general of Saudi Arabian Airlines, Saleh bin Nasser Al-Jasser, said: “The demand for air transport services in the domestic market of the Kingdom of Saudi Arabia has grown exponentially.
“A new brand, with a fresh identity focused on low-fares, flyadeal has brought to the market a new choice – which has been received very positively.”
Al-Jasser added: “The low-fares airline will continue to expand rapidly, and the addition to the fleet aligns well with flyadeal’s target to grow its presence in the domestic market and cover new markets outside of Saudi Arabia.”
flyadeal selected the 737 MAX 8 which has capacity for 189 passengers in a one-class configuration.
Compared to flyadeal’s current fleet of A320s, the MAX 8 carries 12 more passengers and provides eight per cent lower operating costs per seat.