Saudi Ground Services renews SAR 800M contract with Flyadeal

Saudi Ground Services Co.’s (SGS) board of directors decided to renew, on Jan. 31, a three-year contract with Flyadeal Co., at an expected value of SAR 800 million, according to a statement to Tadawul.

The contract’s duration extends from Jan. 1 2024 to Dec. 31 2026. The contract includes providing Flyadeal with ground handling services for domestic and international flights, along with ramp and passenger services, across airports in the Kingdom.

SGS is expected to maintain sustainable revenues during the contract period, the statement said, referring to the financial impact of the contract.

Board members Fahd Hamza Cynndy and Nasser Farouk Alqawas are related parties, the statement indicated, adding that they hold executive positions in Saudia Airlines Group and its subsidiaries, which owns 100% of Flyadeal’s capital.

The contract is in the ordinary course of business and has no preferential treatment.