Saudi wealth fund is said to weigh Boeing, Airbus planes for air cargo fleet

The sovereign wealth fund of Saudi Arabia is in early talks to order freighter planes from Boeing (NYSE:BA) and Airbus (OTCPK:EADSY) (OTCPK:EADSF) for a new cargo fleet amid an effort to become a logistics hub that rivals Dubai and Doha, Bloomberg News reported Monday, citing people familiar with the matter.

The cargo airline would serve flag carrier Saudia and startup Riyadh Air. The Public Investment Fund is discussing with plane makers and lessors to obtain Boeing (BA) 777 and Airbus (OTCPK:EADSY) (OTCPK:EADSF) A350 freighters.

The talks are at an early stage and may fall through, Bloomberg News reported.

Boeing (BA) grounded its test fleet of 777X planes after finding cracks in key engine mounts, trade publication Air Current reported Monday. The plane maker last month started test flights of the plane with U.S. aviation officials as part of the certification process.