RIYAD, SAUDI ARABIA — SAUDIA Group, the aviation holding company that owns SAUDIA and flyadeal, has signed a sale and leaseback agreement with lessor AviLease owned by a Saudi Public Investment Fund.

With this agreement AviLease will deliver 20 Airbus A320neo aircraft to be operated on long-term leases by flyadeal, SAUDIA Group's low-cost subsidiary.

The agreement will take AviLease's portfolio to 32 aircraft. The new aircraft will join flyadeal's existing all-Airbus fleet, comprising 20 Airbus A320 aircraft—and operate across its domestic and international network.

flyadeal is a Saudi low-cost airline based at King Abdulaziz International Airport in Jeddah. It is owned by Saudi flag carrier Saudia. The airline began operation on 23 September 2017 serving domestic destinations.

The airline currently operates 11 A320ceo and 15 A320neo.