MIAMI, Feb 20 (Reuters) - Supply chains for major

planemakers Boeing ( BA ) and Airbus are showing signs

of moderate improvement, the chief executive of Saudi start-up

Riyadh Air said on Thursday.

Securing adequate parts, for both new and existing planes,

has been a major problem for the airline industry in recent

years. The causes ranged from general disruption emanating from

the COVID-19 pandemic to industrial action at Boeing ( BA ) which

caused a seven-week halt to most jet production last fall.

"Are there big challenges out there - yes there definitely

are. Is the supply chain stretched and under huge stress - yes,

and yes," Tony Douglas told an FII Institute event in Miami.

"But am I seeing signs of moderate improvement - I honestly

have to say, yes I do."

Douglas said one continued bottleneck was the suppliers that

serve both Boeing ( BA ) and Airbus, which he described as being "one

level down". He said Riyadh Air was working to overcome any

challenges, without adding further details.

Backed by Saudi Arabia's sovereign wealth fund, the Public

Investment Fund, Riyadh Air has been ordering planes from both

manufacturers ahead of its launch. This includes 60 narrow-body

A321-family jets from Airbus in October, as well as up to 72

Boeing 787 Dreamliners ordered in March 2023.

The airline is currently engaged in a process to select

extra wide-body jets, Douglas said, without elaborating further.

Douglas told Reuters in October it was planning to talk to

Airbus about A350-1000 aircraft and Boeing ( BA ) on its 777X jets.

Riyadh Air is expected to start operations by the end of the

year, Douglas told the event. In the October interview, Douglas

had guided that it would begin flights in the second half of

this year.