DOHA: Qatar Airways is to swap its order for up to 80 Airbus A320neos for the larger, longer-range A321 version, the airline’s CEO said on Thursday.
The Doha-based carrier has refused to take delivery of A320neos since December 2015 over performance issues with the aircraft’s engines.
“We are going to take all A321s, there will be no more A320s,” said CEO Akbar Al-Baker.
An Airbus spokesperson was not immediately available for comment.
The airline is also deciding whether to switch the engine order for the narrow-body jets from Pratt & Whitney, a unit of United Technologies Corp, to CFM, a joint venture between General Electric Co. and Safran SA of France.
“We are still negotiating,” Al-Baker said.
Qatar Airways has refused to accept A320neos powered by Pratt & Whitney engines because they require additional time to start under certain conditions.
The airline said in May it was cutting frequencies on more than a dozen routes from its Doha hub because of delays in acquiring new aircraft from Airbus.
Airbus successfully completed its first test flight for the A321neo in February 2016. However, in December it delayed delivery of its first A321neo to Hawaiian Holdings Inc. by three months.
Airbus’s delivery schedule saw delays through 2016, in part because of problems with engine and cabin parts suppliers.
Al-Baker has said he wants the A321neos from 2018.
Qatar Airways is also moving closer to taking a 49 percent stake in Italy’s Meridiana, which it originally planned to finalize in October 2016.
“By the end of the month we should have put all the loose ends together,” Al-Baker said.
Qatar Airways confirms change to Airbus plane order
Qatar Airways confirms change to Airbus plane order
Closing Bell: Saudi benchmark index closes lower at 10,540
RIYADH: Saudi equities ended Wednesday’s session lower, with the Tadawul All Share Index falling 55.13 points, or 0.52 percent, to close at 10,540.72.
The sell-off was mirrored across other indices, with the MSCI Tadawul 30 Index retreating 5.79 points, or 0.41 percent, to close at 1,393.32, while the parallel market Nomu slipped 74.56 points, or 0.32 percent, to 23,193.21.
Market breadth remained firmly negative, as decliners outpaced advancers, with 207 stocks ending the session lower against just 51 gainers on the main market.
Trading activity moderated compared to recent sessions, with volumes reaching 123.5 million shares, while total traded value stood at SR2.72 billion ($725.2 million).
On the sectoral and stock level, Al Moammar Information Systems Co. led the gainers after surging 9.96 percent to close at SR172.30, extending its rally following a series of contract announcements tied to data center and IT infrastructure projects.
Al Masar Al Shamil Education Co. climbed 4.89 percent to SR27.48, while Naqi Water Co. advanced 3.36 percent to SR58.50. Al Yamamah Steel Industries Co. and Al-Jouf Agricultural Development Co. also posted solid gains, rising 3 percent and 2.86 percent, respectively.
Losses, however, were concentrated in industrial names. Saudi Kayan Petrochemical Co. fell 3.67 percent to SR4.73, while Makkah Construction and Development Co. slid 3.44 percent to SR80.
Saudi Tadawul Group Holding Co. retreated 3.28 percent to SR147.50, weighed down by broader market weakness, and Saudi Cable Co. declined 3.18 percent to SR143.
Alkhaleej Training and Education Co. rounded out the top losers, shedding just over 3 percent.
On the announcement front, BinDawood Holding announced the signing of a share purchase agreement to acquire 51 percent of Wonder Bakery LLC in the UAE for 96.9 million dirhams, marking a strategic expansion of its food manufacturing footprint beyond Saudi Arabia.
The acquisition, which remains subject to regulatory approvals, is expected to support the group’s regional growth ambitions and strengthen supply chain integration.
BinDawood shares closed at SR4.68, up 0.43 percent, reflecting a positive market reaction to the overseas expansion move.
Meanwhile, Al Moammar Information Systems disclosed the contract sign-off for the renewal of IT systems support licenses with the Saudi Central Bank, valued at SR114.4 million, inclusive of VAT.
The 36-month contract is expected to have a positive financial impact starting from fourth quarter of 2025, reinforcing MIS’s position as a key technology partner for critical government institutions. The stock surged to the session’s limit making it the top gainer.
In a separate disclosure, Maharah Human Resources confirmed the completion of the sale of its entire stake in Care Shield Holding Co. through its subsidiary, Growth Avenue Investments, for a total consideration of SR434.3 million.
The transaction involved the transfer of 41.36 percent of Care Shield’s share capital to Dallah Healthcare, with Maharah receiving the full cash proceeds.
Despite the strategic divestment, Maharah shares closed lower, ending the session at SR6.12, down 1.29 percent.
