RIYADH: Saudi Arabia’s Riyadh Air, a subsidiary of the Public Investment Fund, has awarded a SR1.5 billion ($400 million) contract for ground handling services.
The announcement, made via the Saudi Stock Exchange, revealed that Saudi Ground Services Co. has been chosen to oversee Riyadh Air’s operations at King Khalid International Airport in Riyadh.
Effective Sept. 1, 2024, the contract will run for 4.5 years, with an option to extend for an additional 2 years. This extension could bring the total potential value of the contract to approximately SR 1.5 billion over a span of 6.5 years.
This long-term agreement guarantees that Riyadh Air will receive comprehensive ground handling services as it gears up to launch its operations. It positions the airline to effectively support both international and domestic aviation markets.
It is a key step in establishing the airline’s operational infrastructure and will cover essential services such as baggage handling, aircraft servicing, and passenger support.
The move underscores Riyadh Air’s ambitious plans and commitment to ensuring efficient and reliable airport operations.
Riyadh Air was founded in 2023 as part of Saudi Arabia’s Vision 2030 initiative, which seeks to broaden the Kingdom’s economic base. This vision focuses on diversifying the economy by advancing key sectors such as tourism and transportation.
