Saudi Ground Services signs SAR 5.9 bln ground-handling contract with Saudia

Handling by Saudi Ground Services 

Saudi Ground Services Co. (SGS) signed, on June 29, a five-year contract with Saudi Arabian Airlines (Saudia), a related party, to provide ground-handling services for Saudia’s domestic and international flights, the firm said in a statement to Tadawul.

The estimated value of the contract is SAR 5.9 billion.

The five-year contract, which runs from April 1, 2021, to March 31, 2026, is divided into three years, with an option to renew for another two years.

Under the contract, SGS will provide ground-handling services, including ramp services and passenger services, for Saudia flights at all airports in the Kingdom.

The contract is expected to contribute to the sustainability of the company's business, increase cash flow, and positively reflect on the Q2 2021 financial results.

Con Korfiatis, a non-executive board member, has indirect interest, the statement noted.