Saudi Airlines Catering Company (SACC) has signed a renewed version of its in-flight catering agreement with Saudi Arabian Airlines (Saudia), which currently ends on December 31, 2019.

The agreement 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 January 1, 2020, until December 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 SAR12 billion ($3.1 billion).

The company announced through a statement in Tadawul that it expects the contract to be positively reflected on its financial results starting from the first quarter of 2020, in addition to business sustainability, cash flow continuation, and enhancement of its business relationship with Saudia. SACC is also expected to greatly benefit from the continuous growth of Saudia’s fleet and the increase of its number of flights and passengers, being one of the leading airline carriers in the region.

Mohammed Al-Sarhan, chairman of the board at Saudi Airlines Catering Company, commented: "We are extremely proud about our 38 years strategic partnership with Saudia, which is a testimony to our company’s expertise and the trust that is put 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 at Saudi Airlines Catering Company, confirmed the readiness of the company to provide its services at the highest level going in parallel with the vision and plans of Saudia.

“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 per cent market share,” he said.

He added: “Our company offers a wide range of products and services, including catering and hospitality services in remote sites and Hajj & Umrah, this is in addition to our retail and support services provided to local and international clients. This contract will support business sustainability and moving forward with our strategic diversification.” - TradeArabia News Service

Copyright 2019 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.