Saudi Ground Services Company has announced a contract renewal with flynas, solidifying their partnership in aviation services. The agreement, disclosed via a bourse filing on April 13, 2024, extends Saudi Ground Services’ provision of ground handling services to flynas for domestic and international flights across the Kingdom’s airports.
Valued at approximately $533 million (SAR 2 billion), the five-year contract spans from January 1, 2024, to December 31, 2028, emphasizing a commitment to operational excellence. This renewal follows a previous agreement initiated in 2019, amounting to SAR 1 billion, which commenced on January 1, 2020.
Officials from Saudi Ground Services highlighted the significance of the contract within routine business operations, affirming its equitable nature devoid of preferential treatment.
Concurrently, flynas is set to augment its capacity with the acquisition of two new A320neo aircraft, expected to increase capacity by 25%. This strategic move aligns with flynas’ growth trajectory and underscores the symbiotic relationship between the airline and Saudi Ground Services.
The extension of this partnership coincides with Saudi Ground Services’ commendable financial performance in 2023, reporting a profit of SAR 211.47 million compared to net losses in the previous year. Revenues surged to SAR 2.45 billion in 2023, signaling resilience amidst market dynamics.
This renewal follows an extension of Saudi Ground Services’ contract with Flyadeal Company earlier in 2024, underscoring its pivotal role in the Kingdom’s aviation sector.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
16th April, 2024
