Saudi Airlines Catering Company (SACC), a publicly listed company, has signed a renewed version of its in-flight catering agreement with Saudi Arabian Airlines (Saudia). The agreement, which currently ends on Dec. 31, has been renewed for a period of 10 years, representing the longest contractual period between both parties in relation to in-flight catering services. The renewed contract shall take effect from Jan. 1, 2020 until Dec. 31, 2029, and shall govern SACC’s performance of in-flight catering services for Saudia’s domestic and international flights as well as several other support services. The provisional value of the contract is estimated at SR12 billion ($3.2 billion).

The company said in a statement that it expects the contract to be positively reflected in its financial results, starting from the first quarter of 2020. The deal will also aid in business sustainability, cash flow continuation, and enhancement of its business relationship with Saudia, it said. SACC is also expected to greatly benefit from the continuous growth of Saudia’s fleet and the increase in its number of flights and passengers.

Mohammed Al-Sarhan, chairman of the board at SACC, said: “We are extremely proud about our 38 years of strategic partnership with Saudia, which is a testimonial to our company’s expertise and the trust on us by our esteemed clients. The company has been evolving over the decades to continuously match the developments of its customers and their changing needs. We will continue on this path by investing in the best resources and entering new markets, positively impacting our investors, customers and employees.”

Wajdy Al-Ghabban, CEO of SACC, confirmed the readiness of the company to provide its services at the highest level. He said: “SACC was established in 1981 to provide catering services to Saudia. It blossomed over the years to become the partner of choice in the in-flight catering industry serving more than 90 local and international airlines with more than 90 percent market share.”

He added: “This contract will support business sustainability and in moving forward with our strategic diversification.”

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