|23 December, 2019

Saudi Airlines Catering Co. signs $3.2 bln deal with Saudia

Deal extends for a duration of ten years between the two parties

Image used for illustrative purpose. An airplane belonging to Saudi Arabian airlines waits at the gate at JFK airport as photographed on November 30, 2011 in New York City.

Image used for illustrative purpose. An airplane belonging to Saudi Arabian airlines waits at the gate at JFK airport as photographed on November 30, 2011 in New York City.

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Saudi Airlines Catering Company (SACC) has renewed its in-flight catering agreement with Saudi Arabian Airlines Est. (Saudia) for a provisional value of 12 billion Saudi riyals ($3.2 billion).

The new signed agreement will take effect from 1 January 2020 for a period of ten years, the longest duration of a contract between the two parties related to in-flight catering services.

SACC’s current contract with Saudia will end on 31 December 2019.

The new deal is expected to have a positive impact on the company’s financial results starting from the first quarter of next year.

“SACC is also expected to greatly benefit from the increasing growth of Saudia’s fleet and the expected increase of its number of flights and passengers,” SACC said in a statement on the Saudi Stock Exchange (Tadawul).

(Writing by Nada Al Rifai  nada.rifai@refinitiv.com ; editing by Cleofe Maceda)

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© ZAWYA 2019

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