Riyadh Air awards ground handling deal to Saudi Ground Services
Contract is worth $400 million
Riyadh Air, a Saudi Arabia’s Public Investment Fund subsidiary, has awarded a $400 million contract for ground handling services to Saudi Ground Services as the Saudi carrier prepares for its forthcoming launch.
The ground handling services contract, effective from September 1, 2024, spans 4.5 years with an option for a two-year extension.
Saudi Ground Services will manage Riyadh Air’s operations at King Khalid International Airport in Riyadh.
This long-term agreement ensures Riyadh Air will benefit from comprehensive ground handling services, essential for supporting its entry into international and domestic aviation markets.
The contract covers baggage handling, aircraft servicing, and passenger support, all critical for the airline’s operational success.
Saudi Ground Services operates ground handling services at 28 airports in Saudi Arabia, with four main hubs in Riyadh, Jeddah, Dammam, and Medina.
Riyadh Air’s establishment in March 2023 as Saudi Arabia’s second carrier aligns with the country’s Vision 2030 initiative. This initiative aims to diversify the Gulf nation’s economy from an overdependence on oil exports by expanding key sectors such as tourism and transportation, which will also generate employment for the country’s large native population.
In a related development, Saudi Ground Services has also renewed its contract with Flynas for a five-year term. This agreement sees Saudi Ground Services providing ground handling services, including ramp and passenger support, for Flynas’s domestic and international flights at all airports in Saudi Arabia. Flynas is a low-cost carrier based in Saudi Arabia.
The recent contracts reflect a broader push within Saudi Arabia to enhance its aviation infrastructure and support the growth of its national airlines in line with the Vision 2030 goals.
Featured image: Saudi Ground Services offers airlines ground handling services across Saudi Arabia. Credit: Saudi Ground Services
